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Jim Chanos reduces size of Tesla short: Bloomberg News

FILE PHOTO: Jim Chanos, Founder and Managing Partner of Kynikos Associates LP speaks at the Reuters Global Investment Outlook summit in New York, November 19, 2013. REUTERS/Mike Segar/File Photo

04 Dec 2020 12:30AM (Updated: 04 Dec 2020 01:12AM)

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LONDON: Jim Chanos, who has been short on Tesla Inc's stock for five years, has reduced his bet against the electric carmaker, the short-seller told Bloomberg News on Thursday.

Chanos told Bloomberg he has never met or had a conversation with Elon Musk, but if they were to meet he would say "job well done so far."

The change in tone from the bearish investor, whose hedge fund Kynikos Associates first disclosed the short position in 2016, comes ahead of Tesla's entry to the S&P 500 benchmark index on Dec. 21.

Tesla's stock has risen nearly seven-fold so far this year. Its shares were up 3.2 per cent on Thursday, extending its meteoric rally.

"Obviously this is not being valued as a car company, it's being valued on Musk ... he's the reason people own the stock," Chanos had said in 2017.

Chanos did not immediately respond to a Reuters request for comment.

Source: Reuters