ML-Implode News - Famed Short-Seller Jim Chanos Says Tesla Headed for â€˜Brick Wall'

Chanos has been public about his short position in Tesla Inc. for more than a year. Last September, when Tesla was merging with SolarCity Corp., he called Elon Musk's automaker a "walking insolvency." He recently reiterated the critique on Bloomberg Television, describing Tesla as "structurally unprofitable" with a "way too leveraged" capital structure. Chanos famously bet early that Enron Corp. would fail and was later proven right.
Chanos warned Wednesday that the spate of executive departures at Tesla this year is reminiscent of Enron before its fall. He predicted Musk will even depart in the coming years for another of his companies, Space Exploration Technologies Corp.Â Morgan Stanley analyst Adam Jonas said earlier this month he could envision Tesla merging with SpaceX as the rocket company becomes a more time-consuming focus for Musk.

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Famed Short-Seller Jim Chanos Says Tesla Headed for â€˜Brick Wall'