Elon Musk's Tesla Inc. (NASDAQ:TSLA) is likely to experience a significant decline in its stock value, according to a prominent investor. The investor's prediction is based on the company's recent developments and its future prospects.

What Happened: Danny Moses, a well-known investor and a long-time critic of Tesla, has forecasted a substantial drop in the company's stock price, reported CNBC's "Fast Money."

Moses, who is known for his role in the "Big Short," expects Tesla's stock to plummet by 70% to $50 from its current $171.

"Everything is kind of falling apart in their core business. He's pointing everybody to robotaxis and AI and autonomy. It's really become a 'show me' story in terms of if it's an auto company, and I think people are going to start to lose patience over time here for what the company is going to be," Moses said.

Moses attributes this anticipated decline to the company's robotaxi and artificial intelligence initiatives, which he believes are masking fundamental business issues. He also points to the distractions caused by CEO Elon Musk's focus on these technologies, despite mounting challenges in the company's core operations.

Despite a brief stock price increase following Musk's reaffirmation of the robotaxi and AI plans during the first quarter earnings call, Moses remains skeptical. He believes that these announcements are diverting attention from the company's underlying problems.

The company is also under investigation by the Department of Justice for potentially misleading consumers and investors about the self-driving capabilities of its vehicles.

Moses, while maintaining Tesla as his main short position, praised another autonomous driving company named Wayve. This firm had recently secured $1 billion in funding from notable investors like Nvidia and Bill Gates.

Why It Matters: Tesla's stock has been under scrutiny for various reasons. The company is facing challenges in the uptake of its Full Self-Driving technology, with only 2% of free trial users opting for the subscription, raising concerns about the future of the technology.

Additionally, Tesla has been experiencing significant changes in its workforce, with reports of laid-off Supercharger team members being rehired.

Despite these challenges, the company is making significant strides in its global expansion, with China recently approving a new megafactory project, and its Cybertrucks gaining traction in the used car market.