Short-seller Jim Chanos is still betting against Tesla saying the stock is ‘ridiculously overvalued’ – and champions Nvidia as the ‘It girl’ of AI


Jim Chanos

Jim Chanos.David Orrell/CNBC/NBCU Photo Bank/NBCUniversal/Getty Images

  • Famed short-seller Jim Chanos said he remains bearish on Tesla, saying the stock is “ridiculously overvalued.”

  • “Tesla in many ways, epitomises this bull market. It’s a hopes and dreams stock,” Chanos told Bloomberg.

  • Meanwhile, the Chanos & Company founder hailed Nvidia as the “It girl” of the artificial-intelligence boom.

Famed short-seller Jim Chanos said he’s still betting against EV maker Tesla in the stock market – and hailed Nvidia as the “It girl” of artificial intelligence.

The founder of Chanos & Company has long been a loud critic of Elon Musk’s car company, previously highlighting growing competition from legacy automakers, and the relatively small size of the luxury-car market.

“Tesla in many ways, epitomises this bull market. It’s a hopes and dreams stock. It’s trading at 75x earnings which aren’t growing anymore,” Chanos told Bloomberg.

“We just think it’s ridiculously overvalued,” he added.

Chanos also touched on the subject of artificial intelligence – a key market theme of 2023, following the release of OpenAI’s ChatGPT. He hailed Nvidia as the “It girl” of AI, adding that he’s not shorting the semiconductor company.

He however highlighted the downsides of artificial intelligence, flagging its risks that come with the technology’s growth.

“I think anytime we see these tectonic shifts in technology, like the internet in the 90s, people at first embrace everything. But what you find out of course, is that when it’s truly a major shift, is that those technologies end up harming as many businesses as they create,” Chanos told Bloomberg.

Read the original article on Business Insider


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