Velo3D Shares Fall After Fraud Allegations
On 25 June 2026, Velo3D Inc (NASDAQ:VELO) saw its share price tumble 8.5% after short‑seller Morpheus Research released a report accusing the company’s chief executive, Dr. Arun Jeldi, of fabricating his professional background and misrepresenting key business relationships. Morpheus disclosed that it holds a short position and alleged that Jeldi "parlayed a failed SPAC and a sham SpaceX relationship into a fortune," claiming the CEO presented himself as a doctor and as the founder of multiple companies despite evidence to the contrary.
The report cites police documents indicating that Jeldi’s brother, Bala Jeldi, attempted to flee India after allegedly defrauding creditors. Multiple former Velo3D employees told Morpheus that the touted SpaceX partnership has been effectively dead since 2024, contradicting Jeldi’s statements that SpaceX is expanding its fleet and purchasing Velo3D parts. Morpheus also examined SEC filings and found that the company’s defense‑sector contracts with the U.S. Department of Defense show zero or minimal dollars obligated, and former staff said that major defense customers such as Lockheed Martin have abandoned Velo3D.
Industry experts quoted in the report disputed the company’s technology claims, pointing to reliability problems and low equipment uptimes. Despite these concerns, Velo3D is trading at a price‑to‑sales multiple of 10.7×, representing an 858% premium to peer companies, even though the firm has posted consistent losses and experienced six consecutive quarters of flat revenue growth. Additionally, the CEO pledged shares worth $54 million as collateral for a private loan.