- Carson Block of Muddy Waters Capital reiterated on “Bloomberg Open Interest” his reluctance to short Tesla (TSLA), despite its nearly 40% year-to-date drop, citing Elon Musk’s exceptional ability to defy odds and rebound from setbacks.
- While acknowledging Musk’s potential brand risks from political involvement, Block attributes Tesla’s recent decline to market and technical factors, opting to seek short opportunities elsewhere rather than bet against Musk’s proven resilience.
Carson Block, the founder and CEO of Muddy Waters Capital, remains steadfast in his reluctance to short Tesla Inc. (TSLA), despite its stock plummeting 38% year-to-date as discussed on “Bloomberg Open Interest.” During the interview, Block reflected on his February 18 comments where he told Bloomberg TV that betting against Elon Musk is a tough call, a stance that ironically preceded one of the stock’s sharpest declines, making it a standout short opportunity globally since then. He attributes this drop more to market dynamics, technical factors, and political uncertainty rather than a fundamental shift in Musk’s leadership, maintaining that Tesla has historically crushed short sellers, breaking their backs rather than just their hearts.
Block acknowledges his long-standing criticism of Musk, having publicly labeled him a liar for years, yet he marvels at the Tesla CEO’s unparalleled mastery of the public company game. He points out Musk’s knack for defying expectations, pulling off feats that seemed impossible just as the company teetered on the brink—whether through innovations like AI and robotaxis or strategic pivots that might mask a quieter shift in Musk’s macro perspective. Even with Tesla’s stock down significantly since mid-February, Block hesitates to bet against Musk, citing the entrepreneur’s consistent ability to rebound and reinvent, a resilience that has left short sellers wary and searching for less daunting targets.
The discussion also touched on Musk’s political involvement, with Block pondering whether it might harm Tesla’s brand long-term, though he stops short of predicting irreparable damage. Tesla’s nearly 40% year-to-date decline underscores the volatility that keeps investors on edge, yet Block’s stance remains pragmatic—admiration for Musk’s track record tempers any urge to join the short fray. He suggests that while the current market dip might tempt some, the broader context of Musk’s unpredictable brilliance and Tesla’s history of defying odds keeps Muddy Waters focused elsewhere, leaving the Tesla short game to braver souls. This blend of skepticism and respect highlights the complex calculus facing anyone eyeing a bet against one of the market’s most enigmatic figures.
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