[sgbuffett]

Tesla  the biggest pig to slaughter

Here is what Jim Chanos says. Tesla is the Cisco of the 2020-2021 bubble.

Jim Chanos: Yeah. I mean, my market predictions are worth 
Jim Chanos: There's lot of them. So we have been infamously short Tesla for years. And to me, it would be one name I would have your viewers just keep an eye on as a bellwether because it reminds me a lot of Cisco in 1999, 2000 when Cisco went parabolic. Cisco made routers and equipment for the internet. But by 1999 and 2000, Cisco was trading at a huge multiple of revenues. And people were just extrapolating out that Cisco would be in all other kinds of businesses that they actually never got into. And although Cisco did fine as a company going forward, the stock collapsed. And with Tesla, you have a auto manufacturer that's trading at a huge multiple of revenues. Most auto companies trade at one half of revenues because they're cyclical. Tesla trades at nine or 10 times revenues, a huge 90 times the estimated earnings.

So investors are still basically putting all their hopes and dreams on this company saying it will be an energy company, it will be a green company, it will be an EV company, it will be an autonomous driving company, and what have you. And so an insurance company, I mean, people are just putting out all kinds of things on the back of this company. And there's usually in every bull market, there's a stock like this that captures the hopes and dreams. It becomes a canvas upon which investors just extrapolate all kinds of things, usually led by a charismatic leader. And I think Elon Musk qualifies as that. And so that's a stock that I would watch as a real indicator of this market.