In the concluding days of June, a lot of speculations have been flying around regarding the woes of Tesla stocks. Some of the most influential investors globally have laid a bet against Tesla.
Bill Gates reportedly held a 500 million dollar short position against Telsa in April. Despite the rise in $TSLA, he increased his position. The bet against the company was supposedly triggered by a fallout between Musk and Gates. Following the increase, Elon Musk revealed that closing the short position would require about $1.5 billion to $2 billion.
In April, Michael Burry doubled down on his already massive 530 million dollars short position. He predicts that $TSLA could plummet by a stunning 90% this year, taking prices as low as $100 per share.
Warren Buffet also publicly declared that he would not invest in an “overvalued” stock, with the Tesla stock in mind.
Tesla’s Woes Increase
At the moment, it seems Tesla faces a risk of bankruptcy. Their Shangai plant has been shut down due to the covid-19 lockdown in China, reducing their production estimate by 20%. The shutdown has also led to the production of fewer cars by the billion-dollar company.
According to Musk, the Berlin and Austin factories are money furnaces burning billions of dollars.
Elon Musk also revealed that Tesla would lay off 3.5% of its workforce very soon. Musk requested remote workers must spend a minimum of 40 hours in the office each week or depart Tesla, hinting that productivity won’t occur via the internet.
These are just fragments of Tesla’s issues. The company has also amassed losses through its BTC position in the past year. In the last few months, Bitcoin has been on a stable fall. Tesla currently has a sum of $1.5billion unrealized loss on its BTC holdings. Tesla will likely acquire a $360m pretax loss if BTC closes below $20k by the end of June.
This has played right into the hands of powerful investors like Bill Gates and Michael Burry who have short positions on $TSLA. Bill Gates has weaponized this by publicly dismissing BTC as an investment. The American billionaire has also attacked cryptocurrencies and NFTs on multiple occasions.
It seems logical to conclude that Bill Gates is promoting his “anti-crypto” narrative because of the positive effect it will have on his short position. If BTC continues on a downward trend, Tesla will feel the heat, and Bill Gates and Michael Blurry may well have the last laugh.
