Thursday, July 7, 2016

Danger Signal For Tesla: Senior Execs Are Bailing; Big Time Short Seller Thinks There is Trouble

Famed short seller Jim Chanos told CNBC that by his count, Tesla has already seen eight executives leave the company this year.

The flight of executives from Tesla Motors reminds him of the shakeups that preceded Valeant's plummet.

"The last high-profile company that we saw with such a similar large number of senior executive departures was Valeant," Chanos said.

Valeant has seen its stock plunge 90 percent in the past 12 months.

In May, Tesla's vice president of production and its vice president of manufacturing left the company.
At the time, Chanos told CNBC"s "Halftime Report" that one of his firm's "historical signposts of a company in trouble is when numbers of senior people leave over a short period of time."

"Tesla fits that bill. ... We have all kinds of questions about the profitability of the business," Chanos said.


(via CNBC)

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