Elon Musk taunts Tesla short seller David Einhorn, sends shorts
Tesla CEO Elon Musk followed through with his promise to send hedge fund manager David Einhorn shorts as consolation for his firm’s short position on the electric automaker.
Einhorn showed off the shorts in a tweet on Friday, but couldn’t resist taking a jab at the quality of the garments.
Shares of Tesla rose nearly 30% last quarter, making it the second-biggest losing position for Einhorn’s fund, Greenlight Capital, according to Bloomberg.
Nevertheless, Greenlight Capital stood by its position, writing in a letter to clients last week that the automaker still has problems with cash flow, efficient production capabilities and increasing competition.
“The odd thing is that while investors claim to be interested in the long-term growth of TSLA (as the valuation certainly can’t be supported by the current loss-making enterprise), the company is focusing investors on very short-term goals,” the note read.
The letter went on to say that Einhorn was “happy” the lease on his Model S had ended, adding there were “growing problems with the touchscreen and the power windows.” He will be getting the Jaguar I-PACE, “which has gotten excellent reviews,” and is the luxury brand’s first all-electric car.
Tesla, which struggled with production challenges related to its Model 3 sedan, recently reached a production goal of delivering 5,000 Model 3 vehicles per week by the end of the second quarter.
Greenlight Capital suggested the company may have “rushed” these vehicles through production in order to “prove a point to short sellers.”
This week Musk announced that he is considering taking the company private for a variety of reasons, including the fact that he doesn’t believe the company’s focus on long-term goals is suited to the demands and expectations of the quarterly earnings cycle.