Tesla shares are still vulnerable to a significant decline in the future, according to investor Danny Moses of The Big Short. Even with the electric car maker's shares down 32% so far this year, Moussa is holding on to his Tesla. “Everything is kind of falling apart in their core business,” the Moses Ventures founder told CNBC's Fast Money on Thursday. “It points everyone to taxis, artificial intelligence and autonomy,” he added, referring to CEO Elon Musk. Musa lists Musk's decision to cut more than 10% of the company's global workforce, a recent Reuters report on the investigation into Tesla's securities and wire fraud, and uncertainty surrounding robotaxis as downside risks. The robot is scheduled to be unveiled on August 8. “This move to have robotaxis and AI will fade over time. So, a market cap of $150 billion at $50? Seems like a reasonable valuation to me,” he said. Tesla stock closed down 2% on Friday, closing at $168.47. Muse, known for successfully betting against the housing market before its 2008 crash, had a $50 short position in Tesla last November as well. Tesla named his first short film. “It's become a 'show me' story in terms of whether it's a car company, and I think people will start to lose patience over time here about what the company is going to be,” he said on Fast Money. In November . Moses expects Wayve, a self-driving company, to emerge as a serious competitor to Tesla. “They are using autonomy now to drive in cities,” he said. Wayve announced last week that it had raised more than $1 billion to develop automated driving products. Major investors include Nvidia, Microsoft and SoftBank. Moses also has a stake in Wayve through a venture capital fund. “I don't think people paid enough attention to this,” Moses said. Tesla shares fell 7% last week. CNBC's Anna Gleason contributed to this article. Disclaimer
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Big sell-side trader Danny Moses warns Tesla at risk of 70% decline
