Trader Danny Moses, featured in ‘The Big Short’, still betting against Tesla, claims core business is ‘crumbling’

Investor Danny Moses, known for his role in “The Big Short,” believes that Tesla shares are still at risk of experiencing a significant decline. Despite the stock already being down 32% this year, Moses remains committed to his short position on Tesla. He expressed concerns about the company’s core business falling apart, citing CEO Elon Musk’s focus on robotaxis, AI, and autonomy as potential downsides. Moses pointed to Musk’s decision to cut more than 10% of Tesla’s workforce, ongoing investigations, and uncertainty surrounding the robotaxi as reasons for his bearish outlook. Tesla’s shares closed at $168.47 on Friday, down 2%.

Moses, who successfully bet against the housing market before the 2008 financial crisis, had initiated his $50 short on Tesla last November. He views Tesla as a “show me” story and believes that investors may start losing patience with the company’s direction over time. Moses sees Wayve, an autonomous driving company, as a potential competitor to Tesla, noting their focus on driving in cities. Wayve recently secured over $1 billion in funding from major investors such as Nvidia, Microsoft, and SoftBank, in which Moses also holds a stake through a venture capital fund. Despite these developments, Tesla shares experienced a 7% drop last week.

The uncertainty surrounding Tesla’s future has led to skepticism from investors like Danny Moses, who anticipate further challenges for the electric-vehicle maker. Moses remains bearish on Tesla due to concerns about the company’s core business, Musk’s focus on robotaxis, and competition from companies like Wayve. With Tesla shares already down significantly this year, Moses is sticking to his $50 short position on the stock. He believes that Tesla’s $150 billion market cap may not be sustainable in the long run and expects investors to lose patience with the company’s direction. Despite recent developments in the autonomous driving space, Tesla’s shares continue to face downward pressure.

Investors are closely monitoring Tesla’s upcoming robotaxi unveiling on August 8, which could provide further insight into the company’s strategy for the future. However, the ongoing investigations and workforce cuts have increased uncertainty around Tesla’s outlook. With competition in the autonomous driving space heating up, investors like Moses are keeping a close eye on developments from companies like Wayve, which recently secured a significant amount of funding. By diversifying his investments into autonomous driving companies, Moses is positioning himself to potentially capitalize on emerging trends in the industry.

As Tesla shares continue to face selling pressure, investors are reevaluating their positions in the electric-vehicle maker. Moses’ short position on Tesla reflects his bearish outlook on the company’s future prospects and valuation. With challenges mounting for Tesla, including regulatory scrutiny and competition in the autonomous driving space, investors are closely monitoring developments that could impact the stock price. While Tesla remains a key player in the electric-vehicle market, concerns about the company’s long-term viability have prompted some investors to take a cautious approach. As the market awaits Tesla’s robotaxi unveiling, the company’s stock remains vulnerable to further declines.