Danny Moses, known for his successful bets against the housing market in 2008, is sticking with his short position on Tesla despite the stock being down 32% this year. His concerns about the electric-vehicle maker include Elon Musk’s focus on robotaxis and AI, a recent report about a securities and wire fraud investigation, and uncertainty surrounding the robotaxi unveiling on August 8. Moses believes that Tesla’s market cap of $150 billion is overvalued and sees a target price of $50 as more reasonable. Tesla closed at $168.47 on Friday, down 2%.
Moses views Tesla as a “show me” story and believes that the company’s status as an auto company is becoming increasingly questionable. He expects Wayve, an autonomous driving company that recently raised more than $1 billion to develop automated driving products, to emerge as a serious competitor to Tesla. Wayve’s major investors include Nvidia, Microsoft, and SoftBank, and Moses also has a stake in the company through a venture capital fund. He believes that many people are not paying enough attention to the potential competition from Wayve, which could impact Tesla’s future performance.
Moses had a $50 short on Tesla last November and continues to believe that the stock is vulnerable to further declines. He argues that Tesla’s emphasis on robotaxis and AI will eventually fade, leading to a reassessment of the company’s valuation. He remains skeptical about Tesla’s core business, especially in light of recent workforce cuts and ongoing investigations. Despite the stock falling by 7% last week, Moses is maintaining his position and expects investors to grow impatient with Tesla’s trajectory in the future.
Tesla shares have been under pressure in recent months, with concerns about the company’s ability to deliver on its ambitious goals and sustain its market position. Moses’s critical stance on Tesla reflects broader skepticism in the market about the company’s long-term prospects and the challenges it faces in the competitive electric vehicle space. The upcoming robotaxi unveiling will be a key event for Tesla, as it could impact investor confidence and sentiment towards the stock. Moses’s bearish outlook on Tesla underscores the uncertainty surrounding the company and the electric vehicle market more generally.
Despite Tesla’s recent struggles, CEO Elon Musk remains confident in the company’s future and has continued to push forward with ambitious plans for growth and innovation. The competition in the electric vehicle market is intensifying, with companies like Wayve emerging as potential rivals to Tesla’s dominance. Investors will be closely watching Tesla’s performance in the coming months to see if the company can overcome its challenges and deliver on its promises. The stock’s vulnerability to further declines highlights the risks associated with investing in high-growth, high-volatility companies like Tesla. It remains to be seen how Tesla will navigate the evolving landscape of the electric vehicle industry and whether it can maintain its position as a leader in the market.
