Tesla skeptic Danny Moses, who was portrayed in “The Big Short” movie, has revealed he has given up shorting the electric automaker’s stock for this big reason.
Moses appeared on CNBC to talk about stocks, and when he was asked about his short position on Tesla, he said he had exited it.
Here’s why:
“When the story moves from non-fundamentals to technicals…that’s when I leave the story. It’s very difficult to short a name that is not trading on fundamentals. It’s also hard to go long a name when it’s all on promises.”
Tesla trades and holds a tremendous amount of value on its technology, its prowess as an EV maker, and plenty of other things.
For example, the company’s shares exploded significantly on the news of Donald Trump winning the presidency, and the reasoning was all related to potential regulatory advantages Tesla could have.
The market is not perfect. There have been times when Tesla has beat delivery estimates, and the stock has fallen.
Despite Moses’s decision to exit his short position, he still has skepticism about the company. He said that CEO Elon Musk has promised things to consumers and investors that “never came to fruition.”
He’s also skeptical that Musk will be able to do what he says in his new post in the Department of Government Efficiency (DOGE).
Moses is not the first outspoken Tesla critic to exit their position after being burned by the stock’s performance. Jim Chanos is one of the most notorious investors who shorted Tesla and ultimately decided to ditch the position:
Tesla bear who argued that TSLA is worth $0 gives Elon Musk credit: ‘Job well done’
After Tesla’s massive run-up in 2021, more than 50 percent of short sellers ditched their short positions as well.
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