In a recent interview with CNN, Jim Chanos, founder and president of Kynikos Associates, explained the reasons why he continues to maintain his bearish outlook for Tesla. Shares of Tesla are down 11.1 percent since the company unveiled its new Model X on September 29.

Difficult Transition

Chanos has no problem with Tesla’s products at all, acknowledging that the company makes “great cars,” but he sees the stock priced as if the company has already become a mass market hit.

“I think Tesla’s got a great product, but Tesla’s got to navigate from being basically a small, boutique, elite car manufacturer to a mass market automobile manufacturer. That’s a very, very difficult thing,” Chanos explained.

Overpriced Stock

As Tesla CEO Elon Musk acknowledged himself in 2014, Chanos believes…

Click here to continue reading

Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!