Elon Musk gloats to his hedge fund adversary over Tesla surge, calling David Einhorn ‘Mr. Unicorn’
SpaceX founder Elon Musk reacts at a post-launch information convention after the SpaceX Falcon 9 rocket, carrying the Crew Dragon spacecraft, lifted off on an uncrewed check flight to the Worldwide House Station from the Kennedy House Heart in Cape Canaveral, Florida, March 2, 2019.
Mike Blake | Reuters
Tesla founder Elon Musk has fired again at one among his greatest hedge fund adversaries, ridiculing Greenlight Capital founder David Einhorn in a letter shared on Twitter for his place towards the electrical automotive maker.
Musk addresses Einhorn as “Mr. Unicorn” and himself as “Treelon,” mentioning the losses that Greenlight has suffered because of its quick place towards Tesla.
Whereas the corporate’s shares are barely constructive for the 12 months, they have been on a tear these days since crushing third-quarter earnings estimates greater than two weeks in the past. The inventory is up 7.1% this week and 39.8% over the previous month, main Musk to take a victory lap. He accused Einhorn of constructing “quite a few false allegations towards Tesla.”
“It’s comprehensible that you just want to save face together with your traders, given the losses you suffered from Tesla’s profitable third quarter, particularly since you have had a number of down years in efficiency and a pointy drop in property underneath administration from $15 billion to $5 billion,” Musk wrote. “You might have our sympathies.”
CNBC has reached out to Greenlight for remark.
Extra quick shorts
In his quarterly letter to purchasers, Einhorn acknowledged that his Tesla place dented Greenlight’s returns for the quarter, which in any other case was solidly constructive for the agency. Greenlight Capital funds returned 5.6% in Q3 and are up 24% 12 months up to now, in response to the letter. Nevertheless, in 2018 the agency had its worst 12 months since Einhorn based Greenlight in 1996, dropping 34%.
Einhorn charged that Tesla “continued to spin constructive PR forward of the protection and honest remedy of its prospects.” He additionally alleged that Musk “knowingly orchestrated a big fraud by arranging the $2.6 billion acquisition at a time when SolarCity was bancrupt. Musk and his household had an enormous battle of curiosity, however fairly than correctly recusing himself, Musk initiated the transaction and drove the method.”
For his half, Musk didn’t tackle any of the particular accusations, however invited Einhorn to go to the Tesla manufacturing facility to seek out out for himself how properly the corporate is working.
Musk mentioned he acknowledges “your need to really feel one way or the other related” however added that “the world is more and more recognizing Tesla’s contributions to science, security and a sustainable setting.”
“To the extent that you’ve any need to be taught in regards to the superb progress the individuals of Tesla are making, I want to lengthen an open invitation to satisfy with me to debate Tesla and tour our amenities,” Musk mentioned. “For his or her sake, I am sure your traders would respect you getting sensible on Tesla.”
He closes the letter by saying he’ll ship a present of “quick shorts” to Einhorn, which he additionally did in August 2018.