Big Short Investor Predicts Tesla Stock Will Plummet as Robotaxi Hype Dies Down

Investor Danny Moses, known for his role in “The Big Short,” is standing firm in his bet against Tesla stock, predicting that it will plummet to $50. In an interview with CNBC, Moses criticized Tesla’s focus on Robotaxis and artificial intelligence, labeling it as a distraction from the company’s deteriorating core business.

Moses highlighted the faulty fundamentals of Tesla, pointing out that the company is facing a Department of Justice investigation over allegations of misleading consumers and investors about the capabilities of its self-driving vehicles. He expressed concerns about CEO Elon Musk’s attention being diverted away from Tesla, particularly after the acquisition of X, formerly Twitter.

Despite a brief rebound in Tesla’s stock following Musk’s emphasis on robotaxi and AI plans in the first-quarter earnings call, Moses remains pessimistic. He believes that the company’s core business is under pressure, with delivery volumes stumbling and industry outlooks dimming.

Moses suggested that Tesla’s market cap of $150 billion could eventually plummet to $50, reflecting his bearish outlook on the stock. While maintaining his short position on Tesla, Moses highlighted another autonomous driving firm, Wayve, which recently secured $1 billion in funding from investors like Nvidia and Bill Gates.

As Tesla continues to face challenges and scrutiny, Moses remains steadfast in his belief that the stock is headed for a significant correction, despite the company’s efforts to pivot towards new tech initiatives.