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"Look, Elon Musk is a very, very smart man, but there are a lot of smart people in this world, and being smart is not enough, you have to run and he has runtime problems."
This is the opinion of Steve Eisman, hedge fund manager and investor who has drawn attention to Wall Street for its bets against risky mortgage products designed by some of the world's largest banks.
Now, Eisman bets against Elon Musk Tesla Inc .
TSLA, -3.09%
because, as he said during a Friday interview on Bloomberg TV, he does not see the value in the business and do not believe in doing enough in autonomous driving. 19659004] "I do not see the value to Tesla," said Eisman. "We are short on Tesla," which means it's betting that the stock price of the company will drop over time.
Eisman said Tesla's quarterly results could be crucial for the automaker whose polarizing founder was trapped. He was forced to apologize after talking about one of the 12 boys' rescuers and their 25-year-old soccer coach. trapped in a Thai cave as a "pedo".
"We'll see how his neighborhood is going," said Eisman. Tesla's earnings should be published on August 1
Read : Tesla wins: Prepares more drama after the explosion of Model 3 production
Estimate The Crowdsourcing data company, which gathers estimates from buy-side analysts, hedge fund managers, business executives, academics and others, predicts a consensus loss of $ 2.68 per share in Tesla's upcoming quarter , against an adjusted loss of $ 1.33 in the second quarter of 2017.
As for the stock, Tesla, 15, based in San Carlos, Calif., was not the best. The company's shares are down 13.4% in July, at the close of Friday, and expect a 4.6% decline since the beginning of the year, according to FactSet data. By comparison, the Dow Jones Industrial Average
DJIA, -0.30%
climbed 4.9% in July and is on track for an increase of nearly 3% since the beginning of the year, despite from the excitement of the first seven months of the year. Similarly, the S & P 500 index
SPX, -0.66%
aims a gain of 5.4% up to now in 2018 and a 3.7% yield in July. The Nasdaq composite index laden with technology and the Internet
COMP, -1.46%
meanwhile, is up 3% since the beginning of the year and expects a gain of up to 12% this year, after a week marked by historic losses for bellwether Facebook Inc.
FB, -0.78%
For its part, Eisman finds more attraction by betting on General Motors Co .
GM, + 2.12%
The 110-year-old company founded in Flint, Michigan, which it says it will benefit if autonomous driving takes off and has become an institution well managed after the years 2007-09. financial crisis.
"The only stock in my portfolio that I say has not worked yet but has the potential for a big draw is General Motors."
Eisman gained fame after his subprime story told in "The Big Short" by Michael Lewis, where he correctly bet that mysterious mortgage titles would eventually shake the financial system up to his hard core. Eisman is now a money manager at Neuberger Berman Group
Look at Bloomberg's interview with Eisman below:
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