Tesla stock could easily drop 50%, short seller says

you know you're also short Tesla and just hearing you how you lay out your investment case for Apple you must be expecting Tesla's shares to what get cut in half I mean there not they're fundamentally wildly different companies and Tesla no way is Apple uh yeah I think I think there's obviously huge differences in in in the in in both companies although they do share the same sort of uh China risk and loss of market share in China and yes I think Tesla we're we're short Tesla as well and again these are you know short short positions that are small you know 1 to 2% positions for us but but um yeah you could easily see we could easily see Tesla dropping 50% um you know at that point it would still be trading at you know um it would still be trading at sales multiple of like two or three times what what triggers that is it China or is it just the US EV Market never comes to fruition you know with with short positions with such a high valuation I think you never know what can be the trigger but a loss of market share as um as you know competitive car car manufacturers come out with more and more EV models and people realize that um you know some of the promises about full self-driving and Robo taxis just you know always get pushed into the future I think at any given moment that you know that can serve to kind of realize the gravitational pull of of such a high valuation is musk's cow Towing to XI Jin pay something that could potentially be a growth area particularly because 60% of EV sales do come out of China I mean you know H being beholden to what is essentially a dictator I think is always a risk for any business and the the higher the valuation of your your company and the more dependent you are uh on China for your growth I think the more at risk you are there of the you know political machinations in in in China I want to end really quickly on something you said about meta because their AI spend got dinged by the street why is it that their AI cap capex was negative well I mean I think anytime a company is making a a large capital investment you have to wonder what the returns are going to be on that investment um but I think what Zuckerberg has proven over the past few years is that he can be trusted to make you know smart Investments when they when they come along and they you know they're going to grow more than 20% this year so we're willing to give them the benefit of that out that those are going to bear fruit over the over the near term

Channel: Yahoo Finance

Views: 7,370

Keywords: Yahoo Finance, Personal Finance, Money, Investing, Business, Savings, Investment, Stocks, Bonds, FX, Currencies, NYSE, Equities, News, Politics, Market, Markets, Yahoo FInance Premium, Stock market

Id: 5c9yXDDGZ_A

Length: 2min 10sec (130 seconds)

Published: Fri May 03 2024