Chanos: Tesla Basically Valeant On Four Wheels

Uh oh, Big Jim just dropped the "V-word."
Author:
Publish date:
Updated on

At this point, when Jim Chanos drops by the CNBC studios to discuss Tesla he might as well wear a "I came to drop bombs" t-shirt.

Chanos.Musk

Big Jim went HAM on Elon Musk's proposed Tesla/Solar City merger two weeks ago and today he doubled down on his Musky criticism by comparing Elon's car company to another firm... a very particular firm.

Famed short seller Jim Chanos told CNBC that by his count, Tesla has already seen eight executives leave the company this year.
"The last high-profile company that we saw with such a similar large number of senior executive departures was Valeant," Chanos said.

That sound you hear is Bill Ackman shrieking "How DARE you!"

But is Chanos just dropping the V-Word or does he have a larger point?

In May, Tesla's vice president of production and its vice president of manufacturing left the company. At the time, Chanos told "Halftime Report" that one of his firm's "historical signposts of a company in trouble is when numbers of senior people leave over a short period of time."
"Tesla fits that bill. ... We have all kinds of questions about the profitability of the business," Chanos said.

So, he's just kind of dropping it.

Short seller Chanos says Tesla sure does remind him of Valeant [CNBC]

Related