Danny Moses, the Tesla skeptic portrayed in the movie “The Big Short,” revealed that he gave up shorting shares of the electric car maker for this big reason.
Musa appeared on CNBC to talk about the stock, and when asked about his short position in Tesla, he said he exited it.
Here’s why:
“When the story goes from the non-essential to the technical… that’s when I let the story go. It’s very difficult to shorten a name that’s not trading based on the fundamentals. It’s also difficult to elongate a name when everything is built on promises.
Tesla trades and holds a tremendous amount of value in terms of its technology, its prowess as an electric vehicle maker, and a lot of other things.
For example, the company’s stock exploded after news of Donald Trump winning the presidency, and it was all about the potential regulatory advantages Tesla could have.
The market is not perfect. There have been times when Tesla beat delivery estimates, and the stock fell.
Despite Musa’s decision to exit his short position, he still has doubts about the company. He said CEO Elon Musk promised consumers and investors things that “never came to fruition.”
He also doubts that Musk will be able to do what he says he will in his new position at the Department of Government Efficiency (DOGE).
Musa is not the first outspoken Tesla critic to exit his position after being hurt by the stock’s performance. Jim Chanos is one of the most famous investors who shorted Tesla and ultimately decided to exit the position:
Tesla bear who argued TSLA is worth $0 gives Elon Musk credit: ‘Job well done’
After Tesla’s massive rally in 2021, more than 50 percent of short sellers abandoned their short positions as well.
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