Investor Danny Moses, known for his role in “The Big Short”, believes that Tesla shares are still at risk of a significant decline, despite already being down 32% this year. He points to various factors, including Elon Musk’s focus on robotaxis and AI, a recent report about a securities and wire fraud investigation, and uncertainty regarding the success of the robotaxi. Moses had a $50 short on Tesla last November and continues to view it as his top short. He believes that the current $150 billion market cap may not be sustainable in the long run, indicating a fair valuation of $50.
Moses is skeptical of Tesla’s future as an auto company, noting that investors may begin to lose patience with the company’s direction. He sees Wayve, an autonomous driving company that recently raised over $1 billion from major investors like Nvidia, Microsoft, and SoftBank, as a serious competitor to Tesla. Wayve’s use of autonomy in driving within cities is seen as a significant advantage that could potentially challenge Tesla’s dominance in the market. Moses also has a stake in Wayve through a venture capital fund, further demonstrating his belief in its potential to disrupt the industry.
The unveiling of Tesla’s robotaxi is set for August 8, but Moses remains cautious about the company’s reliance on this technology for future growth. He believes that the market enthusiasm for robotaxis and AI may fade over time, leading to a revaluation of Tesla’s stock price. Despite the recent 7% decline in Tesla shares, Moses continues to hold his short position, anticipating further downside risks for the company. He also highlights Musk’s decision to cut more than 10% of the company’s workforce as a sign of potential challenges ahead.
While Tesla closed lower by 2% on Friday, ending at $168.47, Moses remains steadfast in his short position on the stock. His skepticism about Tesla’s future as an auto company, combined with concerns about the robotaxi and the ongoing investigations, underlie his bearish outlook on the company. As an investor with a successful track record of predicting market downturns, Moses’s opinions carry weight in the financial community. It remains to be seen how Tesla will navigate these challenges and whether it can maintain its leading position in the electric vehicle market amidst growing competition and external pressures.
