Shares of Tesla Inc (TSLA) may have increased 6.5 times this year, but this has not instilled any confidence in Jim Chanos. Jim Chanos is a well-known short seller of Enron and founder and president of Kynikos Associates LP.
He says that “despite the dreams of autonomous taxis, space flights, underground tunnels, whatever – they are a car company and are unprofitable.”
Designing the phase of important market growth as the “Golden Age of Fraud”, the short seller hints that financial fraud will be abolished once the market enters a phase of contraction. He made some of these references to the dot-com bubble that exploded two and a half decades ago.
Chanos makes market forecasts that have proven cost-effective over time in many cases. The short seller called for the imminent demise of Enron back in 2001, a decision that generated $ 500 million in profits.
Earlier in July, Chanos made a similar short position in Wirecard (WCAGY) and earned $ 100 million when the scam surfaced.
The veteran claims that the financial fraud of the companies is carried out legally, but “generally intends to deceive” while reporting accounting records and financial statements.
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