Tesla Short Seller Jim Chanos Shows Fear... Elon Musk 😎
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I mean where the F..k should I really even start. I got stocks that Im keeping in the dark. I got my dudes across the street living large. I got 2 phones 1 need a charge. Ya, they twins I can tell they a.. apart. I got big packs coming on the way. I got big stacks coming out of the safe. There’s a big gap between us in the game… In the next life Im trying to stay paid… WHEN I DIE PUT MY MONEY IN THE GRAVE! SMASH THAT THUMBS UP BUTTON OR IM TELLING ELON MUSK
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Well, good day subscribers Hope you guys are having a great day out there as always, well we got some huge news out today. One of the most famous short sellers, if not the most famous short seller of Tesla stock has placed a bet now that Tesla stock is gonna rise. Yes, you heard me right. Jim chinos.
If you did not know Jim chinos. That’s a picture of Jim Chanos right there. Now, in terms of Jim Chanos, he describes his investment strategy as being based on intensive research into stocks looking for fundamental and large market failures in valuation, typically based on underestimated or previously unreported feelings in the business or market of a stock.
He follows his research by committing to usually large, short positions, which he is willing to hold for a long period of time. So basically putting that the easiest way possible, he’s usually shorting stocks to hopefully go to zero. He’s holding these for a long period of time. He’s not like shorting for a short period of time, like thinking, Oh, this company might miss earnings.
So let me short this stock or something like that. He is Jim chinos get involved in a position he usually believes the stock is going to zero, which he has been on record of saying Tesla’s worth nothing. So I assume with Jim chinos his short position on Tesla is to hopefully have the stock go to zero overtime, okay, he began his career in the 1980s.
As a short seller, and his most famous position that kind of like made him a popular person was they did bet against Enron in 2000 in one, okay, and that’s like Jim Chanos his big success and that’s like, put him on the map and like made him really famous in the short seller community and it’s kind of funny how short selling works because all you need is one really big success, too.
And you also have like a big name, whereas like, if you go long shares, right, you could have 100 great investments and still not make a huge name for yourself. But as a short seller, all you need is one really big company that you short it to absolutely fail like an Enron situation and all sudden you’re super famous, okay, and it’s just kind of is kind of silly, the way it works.
Okay, this guy’s biggest success in terms of putting him on the map happened back when I was like 12 years old or something like that. I’m about to turn 30 Okay, it’s been a long time. And you know, who called this out come off called this out interview he did with CNBC.
They kind of pushed him on the whole notion that Oh, Jim Chanos is short Tesla. He knows what’s going on. Jim Chanos isn’t delusional. He knows that Tesla is a good short position and whatnot and come off basically said Jim Chanos. He’s a guy that makes money once a decade.
He said Jim Chanos makes money once a decade while the market rips up this guy bleeds money, he’s never on CNBC. Every time something works he’s there for five minutes and it’s so true. And it’s not just gym channels it’s a lot of these short sellers they’ll lose money or lose money or lose money and lose money consistently while the market goes up.
Because what happens the market usually goes up right but that once every five years or 10 years that their short position actually works out and the company fails. Oh my gosh, we we go and like throw these guys parades and act like their god like human beings or something like that.
And it’s like, where are some of these guys on the on the fortune like 400 list? Okay, where’s Jim Chanos? on that list? I’m pretty sure there’s a lot of great long investors that are far far ahead of him net worth and in success and all those sorts of things right. But yet, you know, oh, you shorted Enron.
Oh my gosh, you’re awesome God or something like that. It’s just ridiculous. Okay. Now Jim Chanos has made some ridiculous statements in the past this being one of them. Jim Chanos, this was back in 2018. So Tesla’s falling behind General Motors and Audi in software and I’m like Jim chinos what what planet are you on? Exactly?
Like, go see the software in any General Motors vehicles that are out there right now or any Audi’s that are out there right now and then go see like a model three, or something like that, like they’re not even close? That just kind of speaks to the delusion that some of these short sellers kind of like like, they actually think like, Oh, this automakers actually had a Tesla.
And it’s like, look at what’s going on in the real world and tell me how General Motors or how Audi is ahead of Tesla, like it’s just an absolute joke, but they get away with it and they get on TV and they throw across these talking points and the media puts out there and CNN and CNBC and whatnot.
It’s just ridiculous. Okay, no one’s doing a little more research. And I found this interview from a few years ago in regards to Jim Chanos, he was on Bloomberg and they asked him straight up they said, what would it take for you to give up on your Tesla short position in Jim Chino said, quote, I would have to begin to see the company make money.
Okay. Now let’s keep in mind, Jim Chanos from my understanding has not given up his short position yet. And let’s keep in mind two of the past three quarters Tesla has been profitable on the bottom line, so Tesla has technically begun to get profitable and depending on how this quarter goes, this could be three out of the past four quarters. were tough. has been profitable.
So we’ll see if Tesla’s profitable again, will Jim channels actually stick to his word he said many years ago that aid when Tesla starts to make profits, maybe I’ll think about covering my position, let’s see if that actually happens. Or he’s going to kick the can down the road and say something else, okay?
Because that’s what a lot of the short sellers do. They’ll say, oh, Tesla can’t do this. Or if they do this, or that, you know, I’m gonna be so great on this. And then it doesn’t work out the way they want to, and then they kick the can down the road, and they say, well, they can’t hit this number.
They can’t do this, or Oh, Ilan must miss this timeline. Or Ilan must said something on Twitter or something like that. They’re always pointed something else than what they originally said. Okay, so it’s just something to take into account. Now it had some trouble finding exactly what price Jim Chanos has been shorting Tesla.
And I found some reports that basically he could be short around the $200 mark. Now, once again, I don’t know if that’s 100% confirmed, he could have shares short, you know, at 300, he could have shares short at less than 200, I don’t know we can assume is somewhere maybe around $200.
Okay, so seeing the stock is at about 226 day, maybe he’s down just very slightly on the position, maybe maybe he’s made some money, maybe he’s lost some money, we don’t know 100% for certain, but if he has been shorting around 200 for the majority of his short position, then it would be down slightly under position, right.
But that’s a lot better than where the stock was at obviously, a few months ago, when it was like $387 I was back at the end of 2018 the stock was just roaring in shorts was just absolutely getting destroyed at that particular time. Then all sudden, we go into 2019. And just like so much stuff has been made up about old Tesla has no demand and things like that.
And it’s just absolutely ridiculous because we’re gonna see, Tesla’s gonna put together one of their strongest quarters ever, if not the strongest quarter in the company’s history that is about to come out probably in, you know, probably three to five weeks depending on when Tesla announces the results and we’re gonna see that oh my gosh, there is actually a lot of demand for.
Tesla’s and oh my gosh, look at those year over year numbers, year over year, numbers could be up 100 plus percent. It should be an unbelievable quarter, regardless. Okay, now, in terms of what came out today, this came out of Tesla already, but basically, Tesla’s biggest short Jim Chanos is betting on.
Tesla’s rise in the latest sec filing basically, if you don’t know like investment funds or things like that, they have to do SEC filings when they make moves. So although they might not want something disclosed, they kind of have to disclose it. Okay. So that’s why something like this comes out.
It’s not because Jim Chanos investors necessarily saying, hey, look what I went ahead and did in regards to Tesla’s because he was forced to kind of let that information out okay, but SEC filings from noted Tesla’s short Jim chinos as shown that the short sellers fund is now long $420,000 worth of Tesla call options.
Now, the filing didn’t provide any information about chinos is short bet against electric carmaker or the call options, the strike price or their premiums paid but their filing does give an impression that chinos long considered as Tesla stocks biggest short is considering a potential rise in Tesla’s stock price. Okay.
Now the question we got to kind of ask ourselves here is, is Jim Chanos doing a complete 180 in regards to Tesla or is he doing something else? Okay, now we have seen complete 180s back in 2018, for instance, Andrew said Tron he had a complete 180 change, he went from short Tesla shares to long Tesla shares, okay, he went from literally being a short of the company to saying.
Hey, I’m going long this company. And basically the reason he said was because the competition is a joke, he said something along the lines of the competition is taking Ambien or something like that. And he said, they’re just, they’re just starting from way far behind where Tesla’s got, you know, Tesla’s years in front of the competition and whatnot. So he actually went long.
And the question is, is Jim channels doing something like that? I do not think so. Okay, I do not believe Jim channels is going to do a 180. I don’t think he’s going to cover his Tesla’s short, although I think it might be a good decision for him to cover his Tesla short, I don’t think that’s what he’s going to do.
What I believe he is doing here is he went ahead and bought those call options, because he is afraid that tests a stock price could go up in the short term, I would say if I had to place a bet, those were probably short term call options of some kind, maybe something over been like the one to four months out timeframe.
And essentially, what this does is it’s allows if you know, they’re wrong, and especially in the short term, and in, you know, Tesla announced a great quarter, and they have a lot of positive things to say about guidance or whatnot. And let’s say Tesla stock roars higher to 80 $300, something like that.
They’re kind of looking at at least we can make some money from the call options on this game, okay. And you’ll see this from short sellers a lot where if they have a big, big short position, they’ll actually buy some call options, just in case they’re wrong, just in case the stock roars higher, they can at least make some money and cover some face in that situation.
And some people do it if they have a really long, you know, a huge long position as well. Let’s say you have $100 million long in Tesla stock for instance, right? You go ahead and place a million dollars worth of put options or something like that, just in case Tesla stock went down in the short term, you could go ahead and profit from that.
So My opinion that’s what’s going on here. I don’t think Jim Chanos is doing a 180 but like I said, I think it would be a good decision for him to go ahead and say, You know what, I’m going to cover this position because Tesla has huge demand.
They got Shanghai opening in a few months like like then they have model y coming next year and things like that. Like if you’re Jim Chanos in, in in you know, Tesla can raise money at will if you’ve heard Jim Chanos, it’s kind of just makes sense to say, hey, let’s cover our position.
Let’s get out of this. I don’t know if he’ll do it, but I can tell you if he ever did do that, that would be a huge win for the Tesla investor base. A huge win. Okay, now just before you guys leave, I want to draw your attention to one really cool video that is gonna go viral over the next week.
Okay, it’s this video by Simone as I turned my Tesla into a pickup truck it’s like a 31 minute video it is so cool. I checked that out this morning. Super cool video. Needless to say that video is gonna go absolutely viral over the next week I would expect it to pick up many millions of views because that is a really cool video guys.
So anyways, I hope you guys enjoyed today’s video. Let me know what you think in that comment section. I really want to hear from you guys. Make sure you smash that thumbs up button if you enjoy the test the videos. Thank you for watching. Have a great day.