# Velo3D: How A Physical Therapist With A Bogus Resume Parlayed A Failed SPAC And A Sham Relationship With SpaceX Into A $390 Million Dollar Fortune - Morpheus Research > Morpheus Research says Velo3D sold SpaceX its IP, overstated contracts, and faces valuation and governance risks. - Canonical URL: https://www.shortreport.fyi/articles/velo/velo3d-how-a-physical-therapist-with-a-bogus-resume-parlayed-a-failed-spac-and-a-sham-relationship-with-spacex-into-a-390-million-dollar-fortune-morpheus-research/ - Published: 2026-06-24T22:00:00.000Z - Authors: Morpheus Research - Tickers: VELO - Companies: Velo3D, Inc. - Keywords: VELO, Velo3D, Inc., Morpheus Research, Short Seller Report, SpaceX, Government Contracts, Valuation **Morpheus Research says the $8M SpaceX deal was a one-time IP handover. Zero dollars obligated under the $9.8M DLA contract as of June 23.** Velo3D neared bankruptcy in late 2024 and then sold SpaceX a perpetual, royalty-free, irrevocable license to its entire technology portfolio for $5 million, plus a $3 million support contract. Former employees told the author that deal effectively handed SpaceX the ability to build Velo-style printers in-house, making future machine purchases unlikely. Morpheus Research, which holds a short position, alleges that Velo's CEO has continued promoting SpaceX as an active and growing customer while the company's filings show SpaceX fell below the 10% major-customer disclosure threshold in 2025 and that, stripped of the one-time licensing deal, SpaceX would have accounted for an estimated $1.4 million, or 3.4%, of 2024 revenue. The stock has rallied 140% over the past twelve months to a market cap of $537 million. --- **Ticker:** VELO (Velo3D, Inc.) **Research Firm:** Morpheus Research **Report URL:** [https://www.morpheus-research.com/velo/?ref=shortreport.fyi](https://www.morpheus-research.com/velo/?ref=shortreport.fyi) **Position Disclosure:** Morpheus Research holds a short position in Velo3D and stands to profit if the share price declines. --- ## **Thesis** Morpheus Research argues that Velo3D's apparent turnaround under CEO Arun Jeldi rests on a SpaceX relationship that is effectively over, defense contracts with little real funding behind them, a technology product outcompeted on reliability, an unproven revenue model, and a CEO biography that contains alleged misrepresentations about his professional and business history. - **SpaceX IP Handover:** Velo sold SpaceX a perpetual, royalty-free, irrevocable license to its full technology portfolio in 2024 for $5 million plus a $3 million support contract. One former employee said: “we licensed them all of our IP. 100% of it.” Without that one-time deal, the report estimates SpaceX contributed roughly $1.4 million, or 3.4%, of 2024 revenue. SpaceX fell below the 10% customer-concentration disclosure threshold in 2025. - **Continued SpaceX Promotion:** At a December 2025 conference, CEO Jeldi said “SpaceX is actually increasing their fleet” and that they were sending parts to print. Former employees alleged SpaceX stopped ordering Velo printers in 2022, that SpaceX revenue “pretty much ceased to exist since 2024,” and that SpaceX has “found an alternative” using another OEM plus internally developed software. - **$32.6M DoW Contract Overstated:** Velo announced a contract “valued at” $32.6 million under Project FORGE in December 2025. Government contracting data from HigherGov cited in the report shows only approximately $2.9 million, about 9% of the program, had been funded as of the time of writing, with the program scheduled to end in roughly three months. In March 2026, competitor Nikon SLM won a new 12-month contract under the same program, with the same DIU program manager quoted in both announcements. - **$9.8M DLA Award Shared Among 24 Bidders:** Velo announced a $9.8 million multi-year DLA contract in March 2026. Per the Department of War's own website as cited in the report, 24 of 27 bidders received awards and would share the total pool. USASpending showed zero dollars obligated to Velo as of June 23, 2026. - **$15M Momentus Deal, Zero Revenue:** Velo announced a $15 million RPS deal with Momentus in April 2025. Velo's financial statements through March 2026 show no revenue booked from the arrangement. Momentus previously settled SEC charges in July 2021 related to misleading investors, reported less than $4 million in combined 2024 and 2025 revenue, and carries a going-concern warning in its most recent annual report. A former senior Velo leader called the deal “an effort to create a press release.” - **CEO Biography Misrepresentations (alleged):** Jeldi refers to himself as “Dr.” and said in a September 2025 interview that he “practiced medicine for 3 years.” The report alleges the only license found in Indiana and California licensing databases is a physical therapy license, and that Jeldi's Indiana physical therapist license application listed his highest education as a bachelor's degree in physical therapy earned in 2004. The report further alleges that the healthcare business Jeldi claimed to have grown to $50 million was INK Staffing, which defaulted on $3.6 million in KeyBank loans, was found vacant by creditors at its listed address, and was dissolved three weeks before the report's publication. - **Acquisition Vehicle and Affiliated Companies Appear Dormant (alleged):** Arrayed Additive, the entity through which Jeldi acquired Velo and which he described as a leader in magnesium and aluminum 3D printing, lists the same Indiana address as his defunct staffing business, has no LinkedIn employees besides Jeldi, and was described by a former Velo employee as “a shell” that “didn't sell anything.” Lite Magnesium Products, another Jeldi-affiliated company, faces two landlord lawsuits over unpaid rent and a March 2026 lawsuit from the seller of its Ohio acquisition alleging missed seller-financing payments and lease breaches. - **Valuation Disconnect:** Per Bloomberg data cited in the report, Velo trades at 10.7x price-to-sales, an 858% premium to the peer average, and at a 287% premium to peer average on consensus EV/Sales. Per the company's filings, Velo has incurred losses from operations since inception and carried an accumulated deficit of $505 million as of Q1 2026. Common shares outstanding increased 129% between December 31, 2024 and May 12, 2026, while Jeldi pledged 3 million shares, approximately 25% of his stake, as collateral for a private loan per the April 2026 proxy statement. --- ## **Catalysts** - **Project FORGE program expiration (approximately 3 months from publication):** If the program closes with only its current ~9% funded and Velo has booked little or no related revenue, it removes a headline contract from the bull case. - **Quarterly and annual filings (ongoing):** Future filings will show whether SpaceX reappears as a named customer above the 10% threshold or remains absent, and whether any revenue has been recognized from the Momentus deal or the DLA program. - **Government contracting database updates (ongoing):** Any obligations posted to USASpending or HigherGov under the DLA or Project FORGE programs would be concrete evidence for or against the defense pipeline thesis. - **Material weakness remediation disclosure (next annual filing):** Velo disclosed seven unremediated material weaknesses in internal controls. Whether the next annual report shows remediation or continued failures will affect credibility of the financial statements. - **Pledged-share margin risk (event-driven):** Jeldi pledged approximately $54 million worth of shares as loan collateral per the April 2026 proxy. A meaningful decline in the stock could trigger a margin call or forced selling. - **Litigation developments (ongoing):** Active cases involving Jeldi include the KeyBank suit over defaulted loans, two landlord suits tied to Lite Magnesium, and the March 2026 Ohio seller-financing lawsuit. Any adverse judgment or settlement could draw investor attention to the CEO's external business record. - **Further executive departures (event-driven):** The CTO, COO, CFO, and VP of Technology have all departed since Jeldi took control. Additional departures would reinforce the governance concerns raised in the report. --- ## **Company Response** No request for comment or company response is mentioned in the source report. --- ## Notable Details - Two “barely used” Velo3D printers were listed on Facebook Marketplace in early 2026 at approximately one-third of their original price, cited by the report as evidence of customer dissatisfaction with reliability. - Former employees said Velo printers typically achieve 20% to 40% uptime or utilization, versus EOS machines “pretty reliably up in the 70s.” One former employee described a Velo printer as a “science experiment.” - Jeldi's brother Bala Jeldi is linked by the report to Hindustan Magnesium, which entered insolvency liquidation in April 2022 with creditors recovering less than 5% of admitted claims. The report cites multiple Indian civil and criminal cases involving Bala, including allegations (in those proceedings) of double-pledging machinery and attempting to flee the country. A former associate is quoted saying Bala “essentially defrauded investors.” These are allegations, not findings. - Lockheed Martin's April 2026 additive manufacturing strategy write-up named EOS and Nikon SLM among its 3D printing partners. Velo was not mentioned. Former Velo employees cited in the report said Lockheed “decided to not use our product” and described a “high level of dissatisfaction.” This conclusion is circumstantial. - Velo projected nearly $1 billion in annual revenue by 2026 in its 2021 SPAC materials. Revenue has been virtually flat for the past six quarters. --- > _“I would be pretty skeptical of [SpaceX] buying more printers from Velo, and the reason I say that is, in October of 2024, we licensed them all of our IP. 100% of it … I'd be very surprised if they ever bought another Velo system.”_ > > _A former Velo employee, quoted in Morpheus Research's report on the significance of the 2024 SpaceX licensing arrangement._ --- ## FAQs #### What happened to Velo3D's relationship with SpaceX? SpaceX represented 27.8% and 28.4% of Velo's revenue in 2021 and 2022 respectively, per company annual reports. Velo stopped shipping printers to SpaceX in 2022, and SpaceX revenue fell to 4% of total revenue in 2023. In 2024, Velo received $5 million for a perpetual, royalty-free, irrevocable technology license and $3 million for a support contract. The report estimates that without those one-time payments, SpaceX would have accounted for roughly $1.4 million, or 3.4%, of 2024 revenue, and SpaceX fell below the 10% customer-concentration disclosure threshold in 2025. #### Are Velo3D's defense contracts real? Velo has announced contracts under Project FORGE and the Defense Logistics Agency, but the report's review of government databases complicates the revenue picture. HigherGov data cited in the report shows approximately $2.9 million, roughly 9% of the $32.6 million Project FORGE program, had been funded as of the time of writing, with the program near its scheduled end. USASpending showed zero dollars obligated to Velo under the $9.8 million DLA award as of June 23, 2026, a contract the Department of War's own website says was shared among 24 of 27 bidders. #### What are the concerns about CEO Arun Jeldi's background? Jeldi uses the title "Dr." and said in a September 2025 interview that he "practiced medicine for 3 years." Morpheus Research alleges that searches of Indiana and California medical licensing databases found only a physical therapy license, and that his license application listed his highest education as a bachelor's degree in physical therapy earned in 2004. The report also alleges that the healthcare business Jeldi claimed to have grown to $50 million was INK Staffing, which defaulted on $3.6 million in KeyBank loans by August 2025, was found vacant by creditors, and was dissolved three weeks before publication. These are the report's allegations, not legal findings. #### What are the seven material weaknesses Velo disclosed? Per Velo's own filings as cited in the report, the company disclosed seven unremediated material weaknesses in internal financial controls, covering areas including inventory existence and valuation, depreciation schedules, and contract asset presentation. Material weaknesses mean there is a reasonable possibility that a material misstatement in the financial statements would not be prevented or detected on a timely basis. Velo has not, as of the report, remediated these weaknesses. #### What is the risk from CEO Jeldi's pledged shares? Per the April 2026 proxy statement, Jeldi pledged 3 million shares, approximately 25% of his stake, worth roughly $54 million at the time, as collateral for a private loan. If Velo's stock declines materially, the lender could require additional collateral or force the sale of pledged shares, which could itself add selling pressure. Jeldi came to control 95% of Velo's stock through a December 2024 debt-for-equity exchange, and shares outstanding have since increased 129%. --- _**Disclaimer:** This summary is not primary research and does not constitute investment advice. It is a brief overview of a detailed equity research report authored by the firm, organization, or source referenced in this article or at [https://www.morpheus-research.com/velo/?ref=shortreport.fyi](https://www.morpheus-research.com/velo/?ref=shortreport.fyi), which contains extensive evidence, regulatory filings, and analysis; readers are encouraged to review the full report there for a comprehensive understanding. The content provided in this publication is not authored or originated by us — we act solely as a distributor and do not endorse, verify, or take responsibility for the accuracy, completeness, or reliability of the information presented. This publication is for informational purposes only and should not be construed as legal, business, investment, or tax advice. Always conduct independent due diligence and consult qualified professionals before making any decisions based on the information contained herein. We disclaim all liability for any loss or damage arising from reliance on third-party content, and the views expressed are solely those of the respective source and do not necessarily reflect our own._ ## Structured Data ```json [ { "@context": "https://schema.org", "@type": "Article", "headline": "Velo3D: How A Physical Therapist With A Bogus Resume Parlayed A Failed SPAC And A Sham Relationship With SpaceX Into A $390 Million Dollar Fortune - Morpheus Research", "description": "Morpheus Research says Velo3D sold SpaceX its IP, overstated contracts, and faces valuation and governance risks.", "datePublished": "2026-06-24T22:00:00.000Z", "dateModified": "2026-06-24T22:00:00.000Z", "mainEntityOfPage": "https://www.shortreport.fyi/articles/velo/velo3d-how-a-physical-therapist-with-a-bogus-resume-parlayed-a-failed-spac-and-a-sham-relationship-with-spacex-into-a-390-million-dollar-fortune-morpheus-research/", "isAccessibleForFree": true, "author": [ { "@type": "Organization", "name": "Morpheus Research" } ], "publisher": { "@type": "Organization", "name": "The Short Report", "url": "https://www.shortreport.fyi" }, "keywords": [ "VELO", "Velo3D, Inc.", "Morpheus Research", "Short Seller Report", "SpaceX", "Government Contracts", "Valuation" ], "about": [ { "@type": "Thing", "name": "VELO" }, { "@type": "Organization", "name": "Velo3D, Inc." } ], "image": [ "https://assets.shortreport.fyi/report-covers/%E3%81%95.png" ] }, { "@context": "https://schema.org", "@type": "Report", "name": "Velo3D (VELO) Sold SpaceX Its Own Blueprint While Calling It a Customer", "description": "Morpheus Research argues that Velo3D’s perceived recovery is overstated and relies on one-time transactions, weakly funded defense announcements, and a materially diminished SpaceX relationship. The report also raises concerns about product reliability, governance, and CEO background claims in relation to valuation.", "url": "https://www.morpheus-research.com/velo/", "author": { "@type": "Organization", "name": "Morpheus Research", "url": "https://www.morpheus-research.com/velo/?ref=shortreport.fyi" }, "about": { "@type": "Organization", "name": "Velo3D, Inc.", "tickerSymbol": "VELO" }, "abstract": "The report’s thesis is that Velo3D’s bull case is built on a SpaceX relationship that has largely ended, while touted defense and commercial contracts show limited funded or recognized revenue. It further contends that operating issues, internal control weaknesses, and alleged CEO biography inconsistencies undermine the company’s premium valuation.", "disambiguatingDescription": "Morpheus Research holds a short position in Velo3D and stands to profit if the share price declines." }, { "@context": "https://schema.org", "@type": "Organization", "name": "Velo3D, Inc.", "tickerSymbol": "VELO", "description": "Velo3D makes metal 3D printers, specifically its Sapphire line, and has promoted a Rapid Production Solutions division intended to generate recurring revenue by printing parts in-house for customers." }, { "@context": "https://schema.org", "@type": "Organization", "name": "Morpheus Research", "description": "Morpheus Research is an equity research firm that publishes short-seller reports.", "url": "https://www.morpheus-research.com/velo/?ref=shortreport.fyi" }, { "@context": "https://schema.org", "@type": "WebPage", "name": "Velo3D (VELO) Sold SpaceX Its Own Blueprint While Calling It a Customer", "description": "Morpheus Research says the $8M SpaceX deal was a one-time IP handover. Zero dollars obligated under the $9.8M DLA contract as of June 23.", "url": "https://www.morpheus-research.com/velo/", "about": [ { "@type": "Thing", "name": "Velo3D, Inc." }, { "@type": "Thing", "name": "Metal 3D printing" }, { "@type": "Thing", "name": "SpaceX IP licensing and contract funding concerns" } ], "mentions": [ { "@type": "Organization", "name": "Morpheus Research" }, { "@type": "Organization", "name": "Velo3D, Inc.", "tickerSymbol": "VELO" } ] }, { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [ { "@type": "Question", "name": "Is VELO stock a good investment right now?", "acceptedAnswer": { "@type": "Answer", "text": "Velo3D (VELO) trades at 10.7x price-to-sales, an 858% premium to the peer average per Bloomberg data cited in the Morpheus Research report, against an accumulated deficit of $505 million as of Q1 2026 and losses from operations since inception per the company's filings. Common shares outstanding increased 129% between December 2024 and May 2026. The report argues the valuation rests on a SpaceX relationship that has materially diminished and defense contracts with little confirmed funding behind them." } }, { "@type": "Question", "name": "What does Velo3D actually do, and why has the stock rallied?", "acceptedAnswer": { "@type": "Answer", "text": "Velo3D makes metal 3D printers, specifically its Sapphire line, and has recently promoted a Rapid Production Solutions division intended to generate recurring revenue by printing parts in-house for customers. The stock rallied 140% over the prior twelve months to a $537 million market cap, driven in part by media coverage describing it as a SpaceX proxy trade and by a series of announced defense contracts. Morpheus Research argues those contract announcements overstate actual committed or funded revenue." } }, { "@type": "Question", "name": "What is Morpheus Research and what is its position in Velo3D?", "acceptedAnswer": { "@type": "Answer", "text": "Morpheus Research is an equity research firm that publishes short-seller reports. It holds a short position in Velo3D and stands to profit if the share price falls. The findings in its report are based on former-employee interviews, government contracting databases, court filings, corporate records, and licensing databases, among other sources." } }, { "@type": "Question", "name": "What happened to Velo3D's relationship with SpaceX?", "acceptedAnswer": { "@type": "Answer", "text": "SpaceX represented 27.8% and 28.4% of Velo's revenue in 2021 and 2022 respectively, per company annual reports. Velo stopped shipping printers to SpaceX in 2022, and SpaceX revenue fell to 4% of total revenue in 2023. In 2024, Velo received $5 million for a perpetual, royalty-free, irrevocable technology license and $3 million for a support contract. The report estimates that without those one-time payments, SpaceX would have accounted for roughly $1.4 million, or 3.4%, of 2024 revenue, and SpaceX fell below the 10% customer-concentration disclosure threshold in 2025." } }, { "@type": "Question", "name": "Are Velo3D's defense contracts real?", "acceptedAnswer": { "@type": "Answer", "text": "Velo has announced contracts under Project FORGE and the Defense Logistics Agency, but the report's review of government databases complicates the revenue picture. HigherGov data cited in the report shows approximately $2.9 million, roughly 9% of the $32.6 million Project FORGE program, had been funded as of the time of writing, with the program near its scheduled end. USASpending showed zero dollars obligated to Velo under the $9.8 million DLA award as of June 23, 2026, a contract the Department of War's own website says was shared among 24 of 27 bidders." } }, { "@type": "Question", "name": "What are the concerns about CEO Arun Jeldi's background?", "acceptedAnswer": { "@type": "Answer", "text": "Jeldi uses the title \"Dr.\" and said in a September 2025 interview that he \"practiced medicine for 3 years.\" Morpheus Research alleges that searches of Indiana and California medical licensing databases found only a physical therapy license, and that his license application listed his highest education as a bachelor's degree in physical therapy earned in 2004. The report also alleges that the healthcare business Jeldi claimed to have grown to $50 million was INK Staffing, which defaulted on $3.6 million in KeyBank loans by August 2025, was found vacant by creditors, and was dissolved three weeks before publication. These are the report's allegations, not legal findings." } }, { "@type": "Question", "name": "What are the seven material weaknesses Velo disclosed?", "acceptedAnswer": { "@type": "Answer", "text": "Per Velo's own filings as cited in the report, the company disclosed seven unremediated material weaknesses in internal financial controls, covering areas including inventory existence and valuation, depreciation schedules, and contract asset presentation. Material weaknesses mean there is a reasonable possibility that a material misstatement in the financial statements would not be prevented or detected on a timely basis. Velo has not, as of the report, remediated these weaknesses." } }, { "@type": "Question", "name": "What is the risk from CEO Jeldi's pledged shares?", "acceptedAnswer": { "@type": "Answer", "text": "Per the April 2026 proxy statement, Jeldi pledged 3 million shares, approximately 25% of his stake, worth roughly $54 million at the time, as collateral for a private loan. If Velo's stock declines materially, the lender could require additional collateral or force the sale of pledged shares, which could itself add selling pressure. Jeldi came to control 95% of Velo's stock through a December 2024 debt-for-equity exchange, and shares outstanding have since increased 129%." } } ] } ] ```