Tesla (TSLA) and Apple (AAPL) have had eventful weeks: the EV firm passed a shareholder vote in favor of top executive Elon Musk’s pay package, and the tech giant announced new AI initiatives at its Worldwide Developers Conference. Despite the positive news, Bireme Capital founder and chief funding officer Evan Tindell is short-selling both shares and joins Catalysts to share his reasoning.
“It’s been a very difficult period for shorting any shares… but for us it kind of rhymes with the 2021 period where, of course you had the SPAC craze,” Tindell explains. He continues, “the growing valuations, or overvaluations in our view, of some of these shares in 2021 contributed to huge underperformance of the Nasdaq and other sort of expansion names in 2022, which allowed us to outperform by around 50%.”
When it comes to Apple, Tindell is skeptical that its AI replacement cycle can drive $300 billion of value. He notes that if AI drives more searches to Siri over Safari, it could end up endangering Google (GOOG, GOOGL).
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