Tesla, a name synonymous with innovation in the electric vehicle industry, faces skepticism from a notable Wall Street figure, Danny Moses. Known for his famed bet against the U.S. housing market—chronicled in the movie “The Big Short”—Moses remains unswayed by Tesla’s latest pivot toward RoboTaxis and artificial intelligence. According to him, these flashy tech endeavors are merely a smokescreen for a company whose core operations are unraveling.
In a recent interview with CNBC, Moses expressed a stark prediction: Tesla’s stock is poised for a drastic 70% decline, potentially bottoming out at $50 per share from its current perch around $171. This bleak outlook stems from his belief that the company’s focus on future tech is distracting from more immediate operational issues.
The Crux of Tesla’s Problems: Fundamental Flaws and Leadership Distractions
Moses points to several red flags that, in his view, signal trouble ahead for Tesla. Firstly, the ongoing Department of Justice investigation into company’s claims about its self-driving capabilities raises questions about the transparency and reliability of its technology narratives. Furthermore, the investor criticizes Elon Musk, Tesla’s CEO, for his divided attention, especially following his acquisition of X, formerly known as Twitter.
“The core business is falling apart,” Moses remarked pointedly during his CNBC appearance. He sees the company’s continued focus on AI and autonomous driving as an attempt to divert attention from its faltering fundamentals. This strategic pivot occurs amidst layoffs and a general atmosphere of instability within the company, contradicting Musk’s public commitment to human-centric advancements.
It’s 2029 & Cathie Woods 5 year Tesla stock price prediction of $2,000 per share has just come true. @CathieDWood @ARKInvest pic.twitter.com/V89fCON6oA
— David Carbutt (@DavidCarbutt_) April 14, 2024
Wall Street’s Waning Confidence and the Rise of Competitors
The sentiment on Wall Street appears to mirror Moses’ concerns. With company’s shares already down nearly 33% year-to-date, analysts are increasingly cautious about the company’s stock. They cite concerns over inconsistent delivery volumes and a less optimistic outlook for the electric vehicle industry at large.
Despite these challenges, company briefly regained some ground following Musk’s reaffirmation of his commitment to RoboTaxis and AI during the company’s first-quarter earnings call. However, Moses remains skeptical about the long-term viability of these plans.
Looking Beyond Tesla: The Emergence of Wayve
While Moses maintains a bearish stance on company, he is not entirely pessimistic about the sector. He highlights Wayve, an autonomous driving startup that has recently attracted significant investment, including $1 billion from heavyweights like Nvidia and Bill Gates. This support underscores a growing interest in alternative players within the autonomous driving landscape, which could pose additional challenges to Tesla’s dominance.
Conclusion: A Critical Juncture for Tesla
As Tesla navigates these tumultuous waters, the coming months will be critical. The company must address its internal challenges and restore investor confidence amidst increasing scrutiny and competition. the road ahead is fraught with uncertainty, and whether it can steer back onto a path of stability and growth remains an open question. With figures like Moses betting against it, the pressure is undoubtedly mounting for one of the most watched companies in the world.
