greenlight's einhorn says tesla shares 'deserve much worse' - energy storage companies
Tesla still has a prominent Hatter.
David Einhorn of Greenlight Capital continues to bet on Tesla (TSLA -Get Report)
Shares are set to fall in the future, and on Tuesday, he told $7 billion of radical fund investors that the shares of the carmaker and the energy storage company had gone through a bad quarter and "should have gotten worse ".
"And CEO [Elon Musk]
In a letter to investors obtained on the street, Einhorn said: "There are bold allegations against TSLA's superior strength, ongoing production shortages, defects and product recalls, proving his
"TSLA faces competition from existing [manufacturers]
Have decades of experience in scale manufacturing.
Greenlight Capital reportedly holds short positions in Tesla, which means the fund will make profits if the share price falls.
The exact size of the Greenlight short position is unclear, and the letter from Einhorn to shareholders does not explain how long the fund has been shortingposition.
Still, even as the company's share price rises, the fund of thatEinhorn seems to have held short positions for some time.
According to reports, in June, Einhorn told Greenlight investors that Tesla "does not make money selling cars ".
Musk is not interested in profits.
Still, Tesla's shares have risen nearly 60% this year.
The launch of Einhorn's letter did not seem to have an impact on Tesla's share price, which soared about 1% to $339.
17 shares
Tuesday trading day
Einhorn also expressed concern about Tesla's plans to build driverless cars.
Musk promised that by the end of 2017, he would produce a driverless car that would be able to travel from Los Angeles to New York without driving.
Einhorn said, "some of TSLA's assumed market leadership in areas such as autonomous driving may be more likely to reflect TSLA's willingness to put untested dangerous products on the road than real technology
He added that the company has a "bad" quarter in terms of its current performance and prospects.
Musk's response to the shortsellers before.
On June, he said on Twitter
The seller wants the company to "die too badly and they can taste it.
A Tesla spokesman did not respond to requests for comment.
The fund has struggled in its recent rights campaign for a year. to-
The date of 3 returns. 3%. It returned 6. 2% net-of-
According to this letter, the cost of 2017.
In June, Einhorn launched his biggest activist campaign ever, a battle on GM's board of directors. (GM -Get Report).
It was also a fiasco, with more than 91% of investors praising his plan.
Still, Einhorn noted that GM's share price rose 16% to $40 even if it lost money.
This quarter was 38.