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Well good day subscribers hope you guys are having a great day out there as always well we got some huge news out today one of the most famous short sellers if not the most famous short seller of tesla stock has placed in bets now that tesla stock is gonna rise yes you heard me right jim chanos if you do not know jim chanos that’s a picture of jim chanos right there
Now in terms of jim chanos he describes his investment strategy as being based on intensive research into stocks looking for fundamental and large market failures in valuation typically based on underestimated or previously unreported failings in the business or market of a stock he follows his research by committing to usually large short positions which he is
Willing to hold for a long period of time so basically putting that the easiest way possible he’s usually shorting stocks to hopefully go to zero he’s holding these for a long period of time he’s not like shorting for a short period of time like thinking oh this company might miss earnings so let me short this stock or something like that yeah if jim chanos did
Get involved in a position he usually believes the stock is going to zero which he has been on record of saying tesla’s worth nothing so i assume what jim chanos his short position on tesla is to hopefully have the stock go to zero over time okay he began his career in the 1980s as a short seller his most famous position that kind of like made him a popular person
Was they did bet against emraan in 2001 okay and that’s like jim chanos his big success and that’s like put him on the map and like made him really famous in the short seller community and it’s kind of funny how short selling works because all you need is one really big success to and you also have like a big name whereas like if you go long shares right you could
Have a hundred great investments and still not make a huge name for yourself but as a short seller all you need is one really big company that you short it to absolutely fail like an enron situation and also in your super famous okay and it’s just kind of it’s kind of silly the way it works okay this guy’s biggest success in terms of him on the map happened back
When i was like 12 years old or something like that i’m about to turn 30 okay it’s been a long time and you know who called this out come off called this out an interview he did with cnbc they kind of pushed him on the whole notion that ol jim chanos his short tesla he knows what’s going on jim chanos isn’t delusional he knows that tesla is a good short position
And whatnot and cometh basically said jim she knows he’s a guy that makes money once a decade he said jim chanos makes money once a decade while the market rips up this guy bleeds money he’s never on cnbc every time something works he’s there for five minutes and it’s so true and it’s not just jim chanos just a lot of these short sellers they lose money and lose
Money and lose money and lose money consistently while the market goes up because what happens the market usually goes up right with that once every five years or ten years that their short position actually works out and a company fails oh my gosh we go and like throw these guys parades and act like they’re god like human beings or something like that and it’s like
Where are some of these guys on the on the fortune like 400 list okay where’s jim chanos on that list i’m pretty sure there’s a lot of great long investors that are far far ahead of him a net worth and and success and all those sorts of things right but yet you know oh you shorted enron oh my gosh you’re also in god or something like that it’s just ridiculous okay
Now jim chanos has made some ridiculous statements in the past this being one of them jim chanos this was back in 2018 said tesla’s falling behind general motors and audi in software and i’m like jim she knows what what planet are you on exactly like go see the software in any general motors vehicles that are out there right now or any audi’s that are out there
Right now and then go see like a model 3 or something like that like they’re not even close that just kind of speaks to the delusion that some of these short sellers kind of like like they actually think like oh this automakers actually had a tesla it’s like look at what’s going on in the real world and tell me how general motors are how outtie is ahead of tesla
Like it’s just an absolute joke but they get away with it and they get on tv and they throw across these talking points and the media puts it out there and cnn and cnbc and whatnot it’s just ridiculous okay now let’s do it a little more research and i found interview from a few years ago in regards to jim chanos he was on bloomberg and they asked him straight up
They said what would it take for you to give up on your tesla short position and jim chanos said quote i would have to begin to see the company make money okay now let’s keep in mind jim chanos from my understanding has not given up his short position yet and let’s keep in mind two of the past three quarters tesla has been profitable on the bottom line so tesla
Has technically begun to get profitable and depending on how this quarter goes this could be three out of the past four quarters where tesla has been profitable so we’ll see if tesla’s profitable again will jim chanos actually stick to his word he said many years ago that ade when tesla starts to make profits maybe i’ll think about covering my position let’s see
If that actually happens or he’s going to kick the can down the road and say something else okay because that’s what a lot of these short sellers do they’ll say old tesla can’t do this or if they do this well they you know i’m gonna be so great on this and then it doesn’t work out the way they want and then they kick the can down the road and they say well they
Can’t hit this number or they can’t do this or ilan must miss this timeline or you though i must said something on twitter or something like that they’re always pointing something else then what they originally said okay so it’s just i’m gonna take into account no i had some trouble finding exactly what price jim chanos has been shorting tesla at and i found some
Reports that basically he could be short around the $200 mark now once again i don’t know if that’s 100% confirmed he could have shares short you know what 300 he could have shares short at less than 200 i don’t know we can assume it’s somewhere maybe around $200 okay so seeing the stock is at about 226 day maybe he’s down just very slightly on the position maybe
Maybe he’s made some money maybe he’s lost some money we don’t know 100% for certain but if he has been shorting around 200 for the majority of his short position then he would be down slightly on the position right but that’s a lot better than where the stock was at obviously a few months ago when it was like three hundred eighty seven dollars i was back at the
End of 2018 the stock was just roaring and shorts was absolutely getting destroyed at that particular time then also when we go into 2019 and just like so much stuff has been made up about all tesla’s no demand and things like that and it’s just absolutely ridiculous because we’re going to see tesla’s going to put together their strongest quarters ever if not the
Strongest quarter in the company’s history that is about to come out probably in a you know probably three to five weeks depending on when tesla announces the results and we’re gonna see that oh my gosh there is actually a lot of time in for tesla’s and oh my gosh look at those year-over-year numbers you’re over your numbers could be up a hundred plus percent it
Should be an unbelievable quarter regardless okay now in terms of what came out today this came out at tesla rd but basically tesla’s biggest short jim chanos is betting on tesla’s rise in the latest sec filing basically if you don’t know like investment funds or things like that they have to do sec filings when they make moves so although they might not want
Something disclosed they kind of have to disclose it okay so that’s why something like this comes out it’s not because jim chanos investors necessarily saying hey look what i went ahead and did in regards to tesla’s because he was forced to kind of let that information out okay but sec filings from noted tesla’s short jim chanos has shown that the short sellers
Fund is now long four hundred and twenty thousand dollars worth of tesla call options now the filing didn’t provide any information about chinos this short bet against electric carmaker or the call options with a strike price or their premiums paid but that filing does give an impression that she knows long considered as tesla stocks biggest short is considering
A potential rise in tesla’s stock price okay now the question we got to kind of ask ourselves here is is jim chanos doing a complete 180 in regards to tesla or is he doing something else okay now we have seen complete 180s back in 2018 for instance andrew citron he had a complete 180 change he went from short tesla shares to long tesla shares okay he went from
Literally being a short of the company to saying hey i’m going along this company and basically the reason he said was because the competition is a joke he said something he long lines of the competition is taking ambien or something like that and he said they’re just they’re just starting from way far behind where tesla’s gatt and you know tesla’s years in front
Of the competition and whatnot so he actually went long and the question is is jim chanos doing something like that i do not think so okay i do not believe jim chanos is gonna do a 180 i don’t think he’s gonna cover his tesla short although i think it might be a good decision for him to cover his test a short i don’t think that’s what he’s gonna do what i believe
He is doing here is he went ahead and bought those call options because he is afraid that tesla’s stock price could go up in the short term i would say if i had a place i bet those were probably short term call options of some kind maybe something over been like the 1 to 4 months out timeframe and essentially what this does is it allows if you know they’re wrong
And especially in the short term in the end you know tesla announces a great quarter and they have a lot of positive things to say about guidance and whatnot and let’s say tesla stock roars higher 280 $300 something like that they’re kind of looking at it as at least we can make some money from the call options on this game okay and you’ll see this from short-sellers
A lot where if they have a big big short position they’ll actually buy some call options just in case they’re wrong just in case the stock roars higher they can at least make some money and cover some face in that situation and some people do it if they have a really long you know a huge long position as well let’s say you have a hundred million dollars long and tesla
Stock for instance right you go ahead and place a million dollars worth of put options or something like that just in case tests of stock went down in the short term you could go ahead and profit from that so in my opinion that’s what’s going on here i don’t think jim chanos is doing a 180 but like i said i think it would be a good decision for him to go ahead and
Say you know what i’m gonna cover this position because tesla that’s huge damn man they got shanghai opening in a few months like like then they have model y coming next year and things like that like if you’re jim chanos and you know tesla can raise money at will i give your jim chanos it kind of just makes sense to say hey let’s cover our position let’s get out
Of this i don’t know if he’ll do it but i can tell you if he ever did do that that would be a huge win for the tesla investor base a huge win okay no just before you guys leave i want to draw your attention to one really cool video that is going to go viral over the next week okay it’s this video by simone it’s i turned my tesla into a pickup truck it’s like a 31
Minute video it is so cool i checked that out this morning super cool video neither’s to say that video is gonna go absolutely viral over the next week i would expect it to pick up many millions of views because that is a really cool video guys so anyways i hope you guys enjoyed today’s video let me know what you think in that comment section i really want to hear
From you guys make sure you smash a thumbs up if you enjoy the tesla videos thank you for watching have a great day
Transcribed from video
Tesla Short Seller Jim Chanos Shows Fear… Elon Musk 😎 By Financial Education
