Rechercher dans ce blog

Thursday, December 3, 2020

Long-time Tesla bear Jim Chanos reduces his short in the company and says his position has been 'painful' - Business Insider

lonk.indah.link
Jim Chanos
  • Legendary short-seller Jim Chanos told Bloomberg he's reduced the size of his Tesla short, adding that his position has been "painful," for the last 12 months.
  • Shares of the electric vehicle maker are up roughly 750% since last year, but Chanos said he still sees issues with Tesla's business model and valuation. 
  • "We're not max short, but we are still short," he said. "But there's now so many other things to do in the EV space that we found lots of other things that are maybe even crazier than Tesla." 
  • Visit Business Insider's homepage for more stories.

Legendary short-seller Jim Chanos told Bloomberg he's reduced the size of his Tesla short, though he still holds a position betting on the stock's downside.

He said the first four years of his short position beginning in 2016 were a success, as the broader stock market gained and Tesla went "sideways." 

But now, the electric vehicle maker is up over 750% in the last twelve months and has a market capitalization of over half a trillion dollars. 

"It's been painful, clearly," Chanos said of the last year. 

He explained he's reduced the Tesla bet from the maximum short position that his hedge-fund, Kynikos Associates, allows. Chanos said he now sees short opportunities with other companies that may be "riding on the coattails" of Tesla's sky-high valuation, like electric-truck maker Nikola.

"We're not max short, but we are still short," said Chanos. "But there's now so many other things to do in the EV space that we found lots of other things that are maybe even crazier than Tesla."

Read more:Morgan Stanley handpicks 42 stocks to buy as their company-specific strengths help them deliver strong growth for many years to come

Though Chanos added he still sees issues with Tesla's business model, valuation, and accounting. While Tesla bulls have touted the company as a clean-energy company and autonomous vehicle company, Chano still sees Tesla as an automobile company, and one that will have to compete with an increasing number of auto manufacturers who are entering into the EV market.

"Every bull market has a stock that people pin their hopes and dreams on," Chanos said. "Certainly one of those stocks this go around is Tesla."

The hedge fund manager pointed out that for the last 12 months, Tesla has not made money from selling cars, but from selling tax credits.

"So for all of their market leadership, and selling $50,000 on average cars, they're still not making any money doing it," he said.

But many on Wall Street continue to bet Tesla has massive upside ahead. Goldman Sachs just upgraded Tesla to a "buy" from "neutral," and raised its price target to $780, a 40% upside from current levels. Goldman analysts said the shift towards battery electric vehicle adoption is accelerating faster than the previously thought, and Tesla is poised to gain from that. 

Let's block ads! (Why?)



"short" - Google News
December 04, 2020 at 01:11AM
https://ift.tt/39FB78s

Long-time Tesla bear Jim Chanos reduces his short in the company and says his position has been 'painful' - Business Insider
"short" - Google News
https://ift.tt/2SLaFAJ

No comments:

Post a Comment

Featured Post

Highland Park Shooting: Latest Updates on Victims, Suspect | Time - TIME

lonk.indah.link T he gunman who opened fire on a Fourth of July parade in the Chicago suburb of Highland Park, Ill., seriously considered ...

Popular Posts