‘Big Short’ investor sets Tesla stock price target

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Danny Moses, an investor known for successfully betting against the housing market before its 2008 implosion alongside Michael Burry, which was documented in an iconic film, ‘The Big Short.’

In particular, Moses is betting against Tesla’s (NASDAQ: TSLA) stock and sees it going all the way down to $50.

Despite TSLA stock being down by 28.53% since 2024 started, Moses warns that it is only a matter of time before the company implodes, potentially leading to significant losses for investors.

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TSLA stock YTD price chart. Source: Finbold

‘Everything is falling apart in its core business, so what is he doing? He (Elon Musk) is pointing to Robotaxis, AI, FSD, while the DOJ is investigating because he is selling a product that doesn’t exist,’ said Moses in a CNBC’s ‘Fast Money’ interview on May 12.

Layoffs, Robotaxis, and DOJ look like a problem to Moses

Moses highlighted several concerning factors regarding Tesla, including Elon Musk’s decision to lay off more than 10% of the company’s global workforce, a recent Reuters report detailing an investigation into Tesla’s securities and wire fraud, and the uncertainty surrounding the Robotaxi initiative. 

He expressed skepticism about the long-term viability of the Robotaxi and AI ventures, suggesting that their initial enthusiasm will diminish over time. Moses also questioned Tesla’s current valuation, proposing a $150 billion market cap at $50 might be more reasonable. 

‘The Big Short’ investor emphasized the need for Tesla to demonstrate tangible results, suggesting that investors may soon run out of patience if the company fails to deliver on its promises.

Wayve seems like a great alternative

Moses anticipates that Wayve, an autonomous driving company, will pose a significant challenge to Tesla. He notes that Wayve currently utilizes autonomy technology for urban driving, indicating its progress in the field. 

Recently, Wayve announced securing over $1 billion in funding to develop its automated driving products further. Noteworthy investors in this round include Nvidia (NASDAQ: NVDA), Microsoft (NASDAQ: MSFT), and SoftBank (TYO: 9984). 

Moses also has a vested interest in Wayve through a venture capital fund.

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