Danny Moses gives up on shorting Tesla as fundamentals crumble

In a recent CNBC appearance, Moses Ventures founder Danny Moses announced that he has exited his short position in Tesla Inc., a move he had maintained since November 2016. Originally critical of Tesla, particularly following its acquisition of SolarCity, Moses signaled a pivotal change in perspective after Tesla's first quarter performance in 2024. He observed that the company's trading began to align more closely with fundamentals, a notable shift from its previous speculative behavior. In the context of fluctuating share prices and ambitious promises of autonomous driving and robotaxis from CEO Elon Musk, Moses articulated a growing skepticism toward investing both long and short in a stock driven by technical, rather than fundamental metrics. He also alluded to Musk's promises from the past, which had not materialized, and raised concerns about fiscal proposals that seemed overly ambitious. Analysts reacted positively to Tesla's recent developments, with a consensus rating of "Buy" circulating, suggesting a belief in the company's resilience and future growth despite its fluctuating stock values. Notably, Tesla’s shares had performed strongly year-to-date, further indicating a potential recovery in public perception and investor sentiment. Moses's departure from shorting Tesla marks an important transition within a market that has previously seen him as a prominent skeptic. This change reflects broader trends seen in the automotive and electric vehicle sectors, where new leadership and direction are increasingly shifting investor outlooks. It heralds a possible stabilization in Tesla’s investor relations as the company continues to balance ambitious promises with tangible results.