Another high profile Tesla bear seems to have a change of heart on their belief about the company's future.
After we reported yesterday fellow Tesla bear Bob Lutz praising the Model 3 build quality, another famous bear Jim Chanos, the founder of hedge fund Kynikos Associates has taken a long position on Tesla via call options.
Jim Chanos is a prolific shorter of companies he believes are hiding major issues within their structure. This paid off handsomely for him with his short of Enron who went bankrupt. While there no doubt Tesla could have faced the same fate on many occasions, it looks like Jim aka Diogenes (@WallStCynic) on twitter has given up on shorting the innovative Electric Vehicle company, or as at least hedging his short position. The 13-F filing which details a companies holding shows a large call position in options which profits if the share price exceeds the strike price. With two mega bears signaling a softening in their negative views on Tesla, and Q2 results around the corner, the huge short interest on the stock is vulnerable to a squeeze, perhaps the short squeeze of the century Elon tweeted about last year?