Why famed short-seller Carson Block won’t bet against Tesla [Video]

Carson Block, known for his shrewd short bets against companies, says he won’t bet against Tesla.

The famed Muddy Waters investor said he concluded in 2021 that shorting Tesla was a fool’s errand. He said he realized the company’s capital base was its safety net.

“What all of the bears missed” was that Elon Musk “understood that the scale he needed to have was capital base,” Block told Bloomberg TV on Monday. “And so when he was able to yoke that stock price way up and have this enormous market cap — I mean, even if the company is bleeding billions of dollars and the stock is sinking, there’s so much market cap that he can continue to raise money.”

It’s an about-face for Block, who said he had bet against Tesla in the past. He told Bloomberg that several years ago his firm held long-dated puts on Tesla designed to …