Investor Danny Moses, known for his appearance in “The Big Short,” has expressed deep reservations about the future of Tesla shares. Despite a 32% decline in the stock price this year, Moses remains steadfast in his short position on Tesla. He points to key issues within the company's core business that are causing him to doubt its potential for long-term success.
Moses highlights several factors that contribute to his skepticism about Tesla's trajectory. These include CEO Elon Musk's focus on robotaxis, AI, and autonomy, as well as recent reports of a securities and wire fraud investigation. Furthermore, the upcoming unveiling of the robotaxi on August 8th adds to the uncertainty surrounding the company's future prospects. Moses believes that the market may be overestimating Tesla's value, suggesting that a $150 billion market cap at $50 per share is a more realistic valuation.
In addition to concerns about Tesla's business model, Moses sees emerging competitors in the autonomous driving space as potential threats to the company. He points to companies like Wayve, which recently raised over $1 billion to develop automated driving products. With major investors such as Nvidia, Microsoft, and SoftBank backing Wayve, Moses believes that Tesla may face stiff competition in the autonomous driving market. Despite acknowledging the potential of Wayve and other competitors, Moses feels that the market has not fully recognized the impact these companies may have on Tesla's future performance.
Danny Moses' critical analysis of Tesla shares raises important questions about the company's long-term viability. His concerns about Tesla's core business, uncertainty surrounding key initiatives like the robotaxi, and the emergence of strong competitors in the autonomous driving space all contribute to a bearish outlook on the stock. While Tesla has captured the imagination of many investors, Moses' contrarian view serves as a cautionary reminder of the risks involved in betting on the future success of a high-flying company like Tesla.
Overall, Moses' insights highlight the need for a thorough analysis of Tesla's competitive position, business model, and market dynamics before making investment decisions. As Tesla continues to navigate challenges and opportunities in the rapidly evolving automotive industry, investors would be wise to consider the full range of factors that may impact the company's future performance.