Jim Chanos has upgraded Tesla’s stock to a put position, showing little faith in the company despite admitting short-selling defeat. Photo: CNBC
Tesla’s (TSLA) valuation has been under considerable scrutiny recently, with the company having become the most valuable car manufacturer on the planet within the last year.
On Wednesday, CNBC reported that Jim Chanos, an investment manager and long-term Tesla bear, is no longer shorting Tesla’s stock and has moved the company to a put rating.
Dude, Jim Chanos doesn't have a short position any more. The biggest, most resilient Tesla short.
What do you think happened with him? Did he stop because of too much profits?
— Rabbit Hole Investor (@rabbitholeinvst) January 21, 2021
Chanos told reporters, “We transformed our stock position into a put position.”
After losses significantly grew for Chanos by short-selling Tesla’s stock, ultimately contributing to the $35 billion short-sellers lost in 2020, the investor had to move in, admitting it had become too much to handle. Still, the choice to move Tesla into a put position does little more than Chanos’ original short rating.
Both short and put ratings are considered bearish, and Chanos is clearly still questioning Tesla’s total valuation.
Despite Tesla having completed a major factory in the world’s largest auto market in China, with factories in progress in Austin, Texas and Brandenburg, Germany, and with the addition of a stock that has skyrocketed in the last year, many bears simply can’t be convinced.
At the time of writing, Tesla’s (TSLA) shares are trading at $846.92 (-0.42%) with a market capitalization of $806.14 billion.
