Tesla, a perennial target of short sellers, is \u201cstructurally unprofitable\u201d with a \u201cway too leveraged\u201d capital structure, said famed investor Jim Chanos.<\/p>\n
\u201cThree years ago, this company was supposed to be making money now,\u201d Chanos, who\u2019s betting against Tesla shares, said in an interview Thursday on Bloomberg Television. \u201cNow it\u2019s supposed to be making money by 2020. And I\u2019m guessing by 2019, we\u2019ll hear about 2025.\u201d<\/p>\n
Chanos, who\u00a0bet early on energy company Enron Corp\u2019s failure, said the electric-car maker run by Elon Musk is behind on autonomous driving technology and rushed the Model 3 to market to appease investors.<\/p>\n
SolarCity Corp., the solar installer Tesla acquired in a controversial deal last year, is about a $1 billion drain to shareholders annually, he said.<\/p>\n
Chanos conceded Musk\u2019s vision was ahead of rivals and called the flagship Model S \u201csexy.\u201d But he said Tesla is now about to face its biggest obstacle yet: real competition in the electric vehicle space from automakers with cash to spend.<\/p>\n
\u201cYou now have lots of competition. You have well-financed, profitable companies competing against you,\u201d said Chanos,\u00a0who founded hedge fund firm Kynikos Associates.<\/p>\n
Musk has trolled some investors in the past for betting against Tesla, tweeting in April\u00a0about \u201cstormy weather in Shortville.\u201d Short interest is about 19 percent of free float, IHS Markit data show, down from a high of 30 percent in January.<\/p>\n
Tesla has climbed 59% this year, vaulting it past both General Motors and Ford Motor in market value.<\/p>\n
\u201cThis stock, probably more than almost any other, is a poster child for the hopes and dreams of this bull market,\u201d Chanos said.<\/p>\n