Summary
- Danny Moses, a Tesla skeptic from "The Big Short," has exited his short position on the electric automaker’s stock
- Moses cited the difficulty of shorting a stock that is not trading on fundamentals and is based on promises
- Tesla’s value is tied to its technology and prowess as an EV maker, leading to volatile stock movements
- Despite skepticism about Tesla and Elon Musk, Moses exited his short position and others have followed
- After Tesla’s significant run-up in 2021, over 50 percent of short sellers abandoned their positions as well
Article
Tesla skeptic Danny Moses, who was portrayed in the movie “The Big Short,” recently revealed that he has given up shorting the electric automaker’s stock. During an appearance on CNBC to discuss stocks, Moses stated that he had exited his short position on Tesla for a specific reason. He explained that it is challenging to short a company that is not trading based on fundamentals and relies heavily on promises for valuation.
What sets Tesla apart is the significant amount of value it holds in terms of technology, electric vehicle manufacturing capabilities, and other factors. For example, the company’s stock saw a significant increase after Donald Trump won the presidency due to the potential regulatory advantages Tesla could gain. However, the stock has also experienced drops despite surpassing delivery estimates, highlighting the market’s unpredictable nature.
Despite his decision to exit his short position, Moses still maintains skepticism about Tesla and its CEO Elon Musk. He expressed doubts about Musk’s ability to deliver on promises made to consumers and investors, as well as his new role in the Department of Government Efficiency. Moses is not alone in his skepticism, as other outspoken Tesla critics, such as Jim Chanos, have also exited their short positions after experiencing losses due to the company’s performance.
Following Tesla’s significant growth in 2021, more than 50 percent of short sellers decided to ditch their positions as well. This trend showcases the challenges of shorting a company like Tesla, which has seen rapid expansion and substantial market value in recent years. Despite the uncertainties and criticisms surrounding the company, Tesla continues to be a major player in the electric vehicle industry and remains a focal point for investors and analysts.
As the market continues to evolve and adapt to changing conditions, the future of Tesla and other electric automakers remains uncertain. The decision of key figures like Danny Moses to exit their short positions reflects the challenges and complexities of investing in companies that value technology, innovation, and promises over traditional fundamentals. Whether Tesla can live up to its potential and deliver on its promises remains to be seen, but the company’s trajectory and impact on the market will continue to be closely monitored by investors and analysts.
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