Short seller who foresaw Valeant crash now bets on Tesla falling

Short seller Fahmi Quadir, who bet against the drugmaker formerly known as Valeant Pharmaceuticals around its peak in 2015, is now betting on a dramatic drop in Tesla shares.

Quadir, the 28-year-old founder of newly launched fund Safkhet Capital, said she initiated a small short position in Tesla stock in July. The electric-car maker seems to be "between a rock and a hard place" because it needs to raise money through an equity or debt offering, and "either will be difficult," she said in an interview. Her fund, which has raised about $US30 million ($42 million) to date, is focused on identifying frauds or accounting vulnerabilities that could cause a stock to lose more than 60 per cent of its market value.

Bloomberg