Tesla Long Term Critic Muddy Waters: I'm Not Short The Stock, Thank God

by Eva Fox July 16, 2020

Tesla Long Term Critic Muddy Waters: I'm Not Short The Stock, Thank God

Featured image: agoby / Imgur

Carson Block, the short-seller at Muddy Waters Capital, spoke with Bloomberg’s Tracy Alloway and Joe Weisenthal on the Odd Lots podcast. A longtime critic stated that he has no bearish bets against Tesla. He admitted that betting against Tesla shares is a bad idea.

“I’m not short the stock, thank God,” Block said in an interview. “We used to joke that Tesla, when it files for bankruptcy, will probably have a $30 billion market cap. Short it at your own risk. I wouldn’t do that.”

Tesla shares continue to rally, gaining about 300% since mid-March. This impressive rise has led many skeptics of the company to change course. Tesla's gains have also attracted the largest amount of cash ever bet against a stock on Wall Street. Short-sellers—who hope for a near-term decline in stock price in order to buy back more cheaply and book profits—have amassed a near $20 billion position against Tesla shares, according to data from the S3 Partners group.

Block said at one point he had a Tesla position that involved buying the company’s convertible bonds and using the coupon payments to fund long-dated put options on the stock, but he eventually sold the debt and let the puts expire.

“It’s one thing to bet on Elon Musk, but it’s another thing to bet against him,” Block said. “The guy specializes in pulling rabbits out of the hat.”

Article edited by @SmokeyShorts, you can follow him on Twitter

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This article is for informational purposes only. You should not construe any such information or other material as an investment, financial, or other advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by Eva Fox, Tesmanian, or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.

Eva Fox holds zero share of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.




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