Jim Chanos tells CNBC he is still shorting Caterpillar (NYSE:CAT) since the company's fundamental story has not changed, and reiterates the combination of Tesla (NASDAQ:TSLA) and SolarCity (NASDAQ:SCTY) is "completely perplexing" and "makes no sense."
CAT is up ~30% YTD but Chanos claims "the fundamentals by our view have not yet changed... [regarding the real estate and debt bubble in China] the collapse has not happened, the unwind has not happened. That's ahead of us, not behind us."
"The supercycle in commodities that peaked out in '11 and '12... was a once-in-a-lifetime kind of thing," Chanos says. "The overcapacity that exists in mining, mining equipment, construction equipment is serious."
On TSLA, Chanos says the company would double its cash burn by taking over SCTY and calls the deal a “big distraction.”