Big short trader Danny Moses cautions that Tesla could potentially experience a 70% decline

Investor Danny Moses, known for his role in “The Big Short,” is doubling down on his short position on Tesla, despite the electric-vehicle maker’s stock already being down 32% this year. Moses believes that Tesla’s core business is falling apart, pointing to CEO Elon Musk’s focus on robotaxis and AI as potential risks.

Moses highlights Musk’s decision to cut more than 10% of Tesla’s workforce, a recent report of a securities and wire fraud investigation, and uncertainty surrounding the robotaxi as reasons for his bearish outlook. He predicts that Tesla’s market cap could drop to $50 billion, a significant decline from its current valuation.

Tesla closed lower by 2% on Friday, ending at $168.47, as Moses continues to hold his short position. He sees Wayve, an autonomous driving company, as a potential competitor to Tesla, noting their recent fundraising success and major investors like Nvidia, Microsoft, and SoftBank.

Despite the recent 7% drop in Tesla shares, Moses remains steadfast in his belief that the company’s future is uncertain. With the robotaxi unveiling set for August 8, investors will be closely watching to see if Tesla can deliver on its promises in the face of increasing competition and skepticism from experts like Danny Moses.