Chanos Sees Tesla as an Overpriced Carmaker Compared With BMW

  • Plans to dramatically expand manufacturing will be a challenge
  • Tesla fell 11% last week when at least 3 analysts cut outlook

Jim Chanos Explains His Short of Tesla, SolarCity

Jim Chanos, the short-seller who runs Kynikos Associates LP, said Tesla Motors Inc. stock is too high compared with other automakers such as BMW AG.

“It’s an overpriced car company,” Chanos said Monday in a television interview on “Bloomberg <GO>” with David Westin and Stephanie Ruhle. Tesla’s challenge will be growing from about 50,000 sales this year to 500,000 or a couple of million in a few years. “Becoming a car manufacturer is harder than being a tech darling,” he said.

His comments follow a five-day losing streak for the electric-car company run by Chief Executive Officer Elon Musk. Tesla shares fell every day last week, dropping 11 percent to the lowest closing price in six weeks. At least three analysts cut their rating or 12-month price target on the luxury automaker.

BMW, which sold 2.12 million vehicles last year, has a market valuation of $66 billion, while Tesla’s market capitalization after last week’s rout fell to about $29 billion. Chanos declined to say if he has taken a short position on Tesla.

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