Tesla's stock appears poised for a significant downturn, which not even new technological advancements may prevent, according to investor Danny Moses in an interview with CNBC.
The well-known skeptic from "The Big Short" and a vocal bear on Tesla, Moses maintains his strong stance against the electric car giant, predicting a drastic drop in share prices to $50, which would mark a 70% fall from the current price of $171. He argues that Tesla's foray into robotaxis and artificial intelligence is merely a veil over the deeper issues plaguing the company's overall business stability.
Last year, Moses initiated a short position on Tesla, triggered by his concerns over CEO Elon Musk's distraction following his acquisition of X, formerly known as Twitter. This diversion, Moses contends, came at a time when Tesla was already facing multiple significant challenges.
Despite a nearly 33% decline in Tesla's stock value year-to-date, Moses's skepticism remains undeterred, especially following Musk's reaffirmation of his commitment to robotaxi and AI technology during the first-quarter earnings call. Moses views these initiatives as distractions from fundamental flaws within Tesla's core operations.
Moses criticized Musk's recent corporate decisions, particularly layoffs, during a Sunday interview, suggesting that Musk's focus on high-tech ventures like robotaxis and AI does not align with the current turmoil within Tesla's basic business model.
Prior to Tesla's first-quarter results, Wall Street had already started to express reservations about the electric vehicle manufacturer, pointing to decreasing delivery numbers and a less favorable industry forecast.
Adding to Tesla's challenges, Moses highlighted an ongoing investigation by the Department of Justice into whether Tesla has misrepresented the capabilities of its self-driving technology to consumers and investors.
Moses remains committed to his bearish stance on Tesla, justifying a market valuation of $150 billion, or $50 per share, as reasonable under current conditions. Alongside his position on Tesla, Moses is also promoting a separate venture into autonomous driving technology with a company named Wayve, which has recently attracted $1 billion in investment from major backers including Nvidia and Bill Gates.
