Why Jim Chanos Is Bearish on Tesla

Jim Chanos in an interview with CNBC

On Thursday, April 26, Jim Chanos shared his views on Tesla, Dunkin’ Brands Group (DNKN), and the US healthcare sector in an interview with CNBC’s “Squawk Box.”

Why Jim Chanos Is Bearish on Tesla

Jim Chanos on Tesla

Jim Chanos has been shorting Tesla (TSLA) for a long time. He has a bearish view on the stock, as he’s not satisfied with the company’s fundamental factors and various organizational changes. He also called its SolarCity (SCTY) merger “crazy.”

During the interview, Jim Chanos said that many top-level executives are leaving the company, which is a negative sign. He also believes that Elon Musk’s leadership may not be helpful for Tesla’s future. He said, “The No. 1 sign of impending problems is mass executive departures. This is becoming a torrent at Tesla…[It is] stunning the accelerating rate of executive departures. I think Elon Musk has crossed the Rubicon in terms of making statements to investors that he might rue later. He may be misleading investors.”

Chanos is also doubtful of Elon Musk’s big announcement about the launch of the Roadster in 2020. Chanos said, “Musk said the Roadster will be available in 2020 and Semi [truck] will be entering production next year…I don’t think either of those are going to happen.”

Tesla’s performance

Tesla stock has fallen 8.3% on a year-to-date basis as of April 30. The broader market S&P 500 Index (SPY) fell 1.7% during the same period. The S&P 500 Index has risen 10.3% in the last one year. However, Tesla stock has fallen 4.6% in the past one year.

In the next part of this series, we’ll analyze Jim Chanos’s short position in Dunkin’ Brands.