(Bloomberg) -- Billionaire investor Michael Novogratz says he earned a “black eye” after shorting Tesla Inc. because the surge in the share price resembles the Bitcoin bubble.
“I got cocky and tried to pick the top of a bubble and I got a black eye,” Novogratz, chief executive officer of Galaxy Digital Holdings Ltd., said during a Bloomberg Television interview in Miami Beach, Florida.
Novogratz said that Tesla, like Bitcoin back in 2017, is no longer a “fundamental story” and is driven now by the compelling narrative and “any bit of good news,” such as Wednesday's stronger-than-expected quarterly results. As with Bitcoin, Novogratz said he remains a huge fan of Tesla and even owns two cars. He plans to exit the trade soon “without that much pain.”
Read More: Elon Musk Has Taken Drastic Steps to Silence Tesla Short Sellers
Novogratz remains bullish on Bitcoin even after it's 30% gain since the start of the year. He favors that largest cryptocurrency over so-called altcoins, which need to find a “use case” in the next several years, he said.
To contact the reporters on this story: Olga Kharif in Portland at okharif@bloomberg.net;Erik Schatzker in New York at eschatzker@bloomberg.net
To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Dave Liedtka, Brendan Walsh
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