Hedge fund manager Dan Niles is short Tesla, but is betting on electric vehicles with this stock

Hedge fund manager Dan Niles said Tuesday that there are smarter ways to play the boom in electric vehicles than buying Tesla.

Niles, who runs the Satori Fund, told CNBC's "Tech Check" that he has a short bet against Tesla based on the stock's valuation and was bullish on the electric vehicle industry overall. Shares of Tesla were down 3% in midday trading after the company reported earnings on Monday night.