(Information) – Tesla Inc (TSLA.O) Chief Government Officer Elon Musk and famous short-seller David Einhorn mocked one another in open letters revealed on Twitter on Friday, buying and selling barbs clothed in well mannered language.
FILE PHOTO: SpaceX proprietor and Tesla CEO Elon Musk speaks throughout a dialog with legendary recreation designer Todd Howard (not pictured) on the E3 gaming conference in Los Angeles, California, U.S., June 13, 2019. Information/Mike Blake/File Picture
Einhorn on Oct. 30 had instructed his traders at Greenlight Capital that his fund had misplaced cash on Tesla. Greenlight wager in opposition to the electrical carmaker, and shares rose within the second quarter.
Nonetheless, he instructed traders that Tesla “seems to proceed to spin optimistic PR forward of the protection and truthful remedy of its prospects.”
Musk, who has a historical past of being playful on Twitter, started an trade by posting an open letter here on Twitter addressing Einhorn as “Expensive Mr. Unicorn (fabulous identify btw)”. Einhorn means unicorn in German.
Musk additional added that Einhorn made quite a few “false allegations” in opposition to Tesla and provided “sympathies” for a drop in belongings below administration.
“It’s comprehensible that you just want to save face along with your traders, given the losses you suffered from Tesla’s profitable third quarter, particularly because you’ve had a number of down years in efficiency and a pointy drop in belongings below administration from $15 billion to $5 billion,” Musk wrote.
Einhorn responded with an open letter here on Twitter, asking the billionaire entrepreneur to be particular about false statements, in order that Greenlight may right them.
“By frequently altering the narrative and narrowly averting disaster after disaster, you definitely have stored it attention-grabbing,” Einhorn mentioned.
Einhorn mentioned his hedge fund and Tesla had “some similarities and a few variations”.
“We each struggled final yr. Nevertheless, a key distinction is that Greenlight’s enterprise has generated actual earnings for our traders since we started in 1996,” Einhorn mentioned.
Greenlight Capital first rose to prominence for making a prescient name on Lehman Brothers’ accounting troubles earlier than the agency’s collapse.
Final yr, it in contrast Tesla to Lehman and earlier this yr mentioned the corporate gave the impression to be “on the brink” of failure.
Buyers previously have proven impatience with Tesla’s failures to fulfill monetary and manufacturing targets. The carmaker, nonetheless, put some issues to relaxation after delivering a shock revenue in its third quarter.
Musk invited Einhorn to fulfill him and tour Tesla’s amenities to study concerning the firm’s progress.
“Lastly, please enable us to ship you a small reward of brief shorts that will help you by way of this troublesome time,” Musk mentioned, signing off as “Treelon Musk.”
Einhorn welcomed the supply to study extra about Tesla.
“I feel facility visits can be enjoyable (can we begin in Buffalo?). I’d study the distinction between your alien dreadnought manufacturing facility and automobiles made by hand in a tent.”
Reporting by Neha Malara and Akanksha Rana in Bengaluru; Enhancing by Maju Samuel and Shailesh Kuber