Submitted by kimkoh t3_10pjll6 in wallstreetbets
VisualMod t1_j6ksp47 wrote
Tesla is overvalued and its profits will peak soon as competition in the electric vehicle market increases. That's according to Jim Chanos, founder of Kynikos Associates LP, who said Monday he's still shorting Tesla Inc. (TSLA) - Get Report . "We think the competitive environment is only going to get worse for them," Chanos told CNBC's Scott Wapner on "Halftime Report." He added that other companies such as General Motors Co. (GM) - Get Report are making big bets in EVs and autonomous driving technologies.
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kimkoh OP t1_j6kthvo wrote
His short positions got threatened by the recent upside, so need to make a comment to recover.
tdogtags t1_j6ku3lp wrote
What other car companies should I invest in?
mecausasui t1_j6kwxum wrote
all of them. they're all making ev's now. vw and ford seem to have interesting positions in the market
stockrot t1_j6mmlx7 wrote
F Ford very cheap here ,you need patience .
SateliteDicPic t1_j6kwvws wrote
Yeah because a price war is so bullish. Chanos is still way up on his short.
kimkoh OP t1_j6ldftd wrote
Wonder what’s the pain point to force the shorts to cover? $185 or $220
stockrot t1_j6mmf68 wrote
Depends on where shorted it and how you shorted it .
kimkoh OP t1_j6naup4 wrote
Agree.
ChampionshipLow8541 t1_j6meu8f wrote
What makes you think it’s one specific point?
kimkoh OP t1_j6nazwx wrote
None. I’m not sure. Guessing what will cause the pain to start and snowball the short covering.
ChampionshipLow8541 t1_j6no5jd wrote
It’s a continuum, just like people’s buy-in prices. And it depends on how much ability you have to wait it out (and they have A LOT). The only thing that would cause a panic imho is if the whole market started a strong and sustained recovery, and they‘d feel that Tesla would be washed up with it, even if the performance started to deteriorate. And it will deteriorate. But if the weak market continues for one or two more quarters, bad news about Tesla will eventually come out and there will be no general momentum to stop the drop.
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