There is growing concern among investors regarding Tesla’s future, with investor Danny Moses of “The Big Short” fame warning of a potential significant decline in Tesla’s share price. Despite the stock already being down 32% this year, Moses remains firm in his short position on Tesla. He pointed out that the core business of the electric vehicle maker is showing signs of disarray, with CEO Elon Musk focusing on robotaxis, AI, and autonomy as the way forward.
Moses highlighted several downside risks facing Tesla, including Musk’s decision to reduce the company’s workforce by more than 10%, a recent report of a securities and wire fraud investigation, and the uncertainty surrounding the robotaxi concept. The unveiling of the robotaxi is scheduled for August 8, but Moses believes that the hype around robotaxis and AI will diminish over time, leading to a more reasonable valuation for Tesla.
While Tesla has been a major player in the autonomous driving space, Moses anticipates strong competition from Wayve, an autonomous driving company that recently raised over $1 billion for the development of automated driving products. Major investors in Wayve include Nvidia, Microsoft, and SoftBank. Moses, who also holds a stake in Wayve through a venture capital fund, believes that Tesla may face increasing pressure from competitors like Wayve in the future.
The ‘Show Me’ Story
Moses views Tesla as a “show me” story, indicating that investors are becoming increasingly skeptical about the company’s ability to deliver on its promises. He emphasized the need for Tesla to prove itself as an auto company, as doubts may start to grow among investors if the company fails to demonstrate tangible progress. With Tesla shares falling by 7% last week, the pressure on the company to show results is mounting.
Tesla’s future seems uncertain as concerns raised by investors like Danny Moses continue to loom over the company. With increasing competition in the autonomous driving space and doubts about Tesla’s core business, the road ahead may be challenging for the electric vehicle maker. As the market waits for the unveiling of the robotaxi and AI initiatives, all eyes will be on Tesla to see if it can weather the storm and prove its critics wrong.