- “Big Short” investor Danny Moses is still betting on Tesla stock, predicting the stock will fall to $50.
- He told CNBC that Tesla's focus on robotaxis and AI is a distraction from its core business, which is “disintegrating.”
- Aside from fundamental flaws, Moses also noted that the company is facing a Justice Department investigation.
Investor Danny Moses told CNBC that Tesla's stock is headed for a sharp correction, and that he expects it to fall so much that even new technology efforts can't reverse course.
The “Big Short” trader and longtime Tesla bear has not withdrawn his bet on the electric car maker, and he still believes Tesla's stock will eventually hit $50, down 70% from its current $171. Expect. The company's robotaxis and artificial intelligence ambitions only cloud its long-term, volatile business outlook.
The founder of Moses Ventures revealed his short interest in Tesla last year following his dissatisfaction with CEO Elon Musk's acquisition of X (formerly Twitter). The way Mr. Moses sees it, Mr. Musk's focus on Tesla has gradually waned at a time when many headwinds were building.
Moses centered on Musk as to why he remains pessimistic about the stock, which has already fallen nearly 33% since the beginning of the year.
The stock briefly rebounded after the CEO doubled down on robotaxis and AI plans during the company's first-quarter earnings call, but Moses sees the announcements as a distraction from the company's flawed fundamentals. .
“As someone who really cares about humanity, we're laying off a lot of people at this point, and everything is falling apart in our core business,” he said on Sunday. “So what is he doing? He's teaching everyone about robotaxis, AI, autonomy, etc.”
Before the first-quarter results were released, many on Wall Street were also cautious about EV companies, citing weak vehicle deliveries and a bleak outlook for the industry.
The list of headwinds goes beyond business results, Moses noted, with Tesla currently facing a Justice Department investigation to determine whether it misled consumers and investors about the self-driving capabilities of its vehicles. he pointed out.
“The more time goes on here, the more their core business will come under pressure and this movement to open up their business to robotaxis and AI will fade over time. “A $150 billion market cap in dollar terms seemed like a reasonable valuation to me,” he said.
Although Moses has Tesla as his main seller, he was promoting another self-driving company called Wave. The company recently secured $1 billion from major investors including Nvidia and Bill Gates.
