Welcome to Extreme Investor Network, where we bring you the latest insights and analysis on the world of investing. Today, we’re diving into the intriguing case of Tesla shares and the ongoing debate around their future potential.
Renowned investor Danny Moses, famous for his role in “The Big Short,” has raised concerns about Tesla’s vulnerability to a significant decline. Despite the electric-vehicle maker’s stock already being down 32% this year, Moses remains steadfast in his Tesla short position. He points to various factors affecting Tesla’s core business, including CEO Elon Musk’s focus on robotaxis, AI, and autonomy.
Moses highlights recent developments such as Musk’s decision to cut more than 10% of Tesla’s global workforce, a securities and wire fraud investigation, and the upcoming unveiling of the robotaxi on August 8 as potential downside risks. He questions the sustainability of Tesla’s valuation, suggesting a $150 billion market cap at $50 per share would be more reasonable.
Notably, Moses sees Wayve, an autonomous driving company, emerging as a serious competitor to Tesla. With investments from major players like Nvidia, Microsoft, and SoftBank, Wayve recently raised over $1 billion to develop automated driving products. Moses, who also has a stake in Wayve through a venture capital fund, believes that Wayve’s approach to autonomy for city driving could pose a challenge to Tesla’s dominance in the space.
As Tesla shares continue to face volatility, investors are advised to stay informed and monitor developments closely. At Extreme Investor Network, we provide unique insights and expert analysis to help you navigate the complex world of investing. Stay tuned for more updates and expert opinions on the latest market trends.