Prominent short seller Jim Chanos took aim at Tesla Inc. CEO Elon Musk's ambitious market cap projections, drawing parallels to previous claims about cost-cutting initiatives.
The firm expects the net price of new vehicles in the U.S. to rise by about $2,000 to $4,000 over the next 6-12 months as car manufacturers pass on tariff-related costs, Reuters reported.
The new trade policies, UBS said, are raising the cost of making a vehicle, subsequently raising the cost of a vehicle for consumers and negatively impacting demand.
A number of stocks jumped in the afternoon session after markets rallied sharply on news that President Trump announced a 90-day tariff pause. Reciprocal tariffs were also dropped to 10% for most countries, sparking renewed optimism amid ongoing trade talks. The major stock indices rose as investors, growing impatient of seemingly irrational tariff actions, welcomed the pause as a sign of a more measured path forward.
The startup wants to crack the formula for building a $25,000 two-seat EV, something established U.S. players like Tesla and Rivian have yet to achieve.
