TLDR
- Eric Jackson, founder of hedge fund EMJ Capital, compares Opendoor’s potential to Tesla’s goal of capturing 10% market share in their respective industries.
- Jackson believes the housing market is ready for growth but depends on the Federal Reserve continuing to cut interest rates from the current 6-7% range for 30-year mortgages.
- Opendoor’s new management aims to provide liquidity to sellers within three days of accepting an offer, targeting distressed sellers who need cash quickly.
- Jackson sparked a rally in Opendoor stock in July, lifting shares from $0.53 to over $10 in less than three months.
- The hedge fund manager also revealed a position in Better Home & Finance in September, another housing-focused company.
Eric Jackson thinks Opendoor Technologies could become the Tesla of real estate. The hedge fund manager and founder of EMJ Capital told Business Insider that he sees the housing market entering a new phase of growth.
Jackson’s bullish call on Opendoor in July sparked a rally that lifted shares from $0.53 to over $10 in less than three months. The stock closed at $9.29 per share on Tuesday before sliding 1.72% in extended trading.
Day 51 — Early Morning in Front of Drake’s ☀️
Another beautiful start to the day here. Today I’m diving into BTQ — one of the most misunderstood names in post-quantum cryptography.While the music’s still playing, you’ve got to dance — and this stock is still massively… pic.twitter.com/iQBllgjkRW
— Eric Jackson (@ericjackson) October 8, 2025
The investor’s optimism centers on Opendoor’s business model as an “ibuyer.” The platform matches buyers and sellers while also offering cash for homes listed on its site. Jackson believes this dual approach gives sellers flexibility they can’t find elsewhere.
“Some people are in a distressed situation and they need to be able to monetize their house quickly,” Jackson said. The company’s new management team aims to provide liquidity within three days of accepting an offer.
This speed could appeal to sellers who need fast access to cash. Jackson sees the current housing environment as prime territory for Opendoor to capitalize on potentially distressed sellers.
The hedge fund manager set a target for Opendoor to capture 10% of total housing transactions over time. He drew a direct comparison to Tesla’s early ambitions in the automotive industry.
“That always was the goal for Tesla when they were getting started, to kind of go for 10% global market share,” Jackson told Business Insider. “I think with the right product, the right customer service, they can get there.”
Interest Rates Hold the Key
Jackson acknowledged his outlook depends on continued Federal Reserve rate cuts. Current 30-year mortgage rates sit in the 6% to 7% range.
“That’s not normal, I think we are due for reversion,” Jackson said. He believes these elevated rates aren’t sustainable long-term.
Lower rates would make homeownership more affordable for buyers. They would also encourage more sellers to list their properties, potentially unfreezing a market that has seen limited activity.
Jackson isn’t just betting on Opendoor. In September, he revealed a position in Better Home & Finance, another housing-focused company. The mortgage company’s stock price jumped following the announcement.
Tech Could Lower Transaction Costs
The investor believes tech-forward companies like Opendoor and Better can reduce costs in real estate transactions. Lower commissions paid to real estate agents represent one potential area for savings.
Faster transaction times could also benefit buyers and sellers. Traditional home sales often take weeks or months to complete.
Jackson thinks Gen Z buyers would particularly benefit from Opendoor’s expanded market presence. Younger cohorts have been conspicuously absent from the homeownership market in recent years.
Economists have noted the declining number of first-time homebuyers. This trend could impact other areas of the economy as well.
Jackson sees tech platforms changing how houses are bought and sold. Speedier transactions and lower costs could entice more people to enter the market.
The housing market has been tough for buyers in recent years. High prices and elevated mortgage rates have kept many potential buyers on the sidelines.
But sellers have also faced challenges navigating the market. Limited inventory and price sensitivity have made it difficult to find qualified buyers.
Jackson believes this environment creates an opening for Opendoor. The platform’s cash offer option gives sellers certainty in an uncertain market.
The company’s ability to close deals quickly sets it apart from traditional real estate transactions. Three-day liquidity would represent a substantial improvement over current industry standards.
Jackson sparked Opendoor’s summer rally with his public support for the stock. He sees the entire housing sector showing early signs of renewal.
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