Einhorn: "Tesla Resembles Lehman"
Bloomberg: David Einhorn Says Tesla Resembles Lehman
"David Einhorn, a prominent critic of Tesla Inc., bashed the electric carmaker, saying its woes resemble that of Lehman Brothers Holdings Inc. before the bank failed.
“Like Lehman, we think the deception is about to catch up to TSLA,” Greenlight Capital said in a quarterly letter Friday seen by Bloomberg. “Elon Musk’s erratic behavior suggests that he sees it the same way.”
Einhorn pointed to parallels by saying “Lehman threatened short sellers, refused to raise capital (it even bought back stock), and management publicly suggested it would go private” in the months leading up to the bank’s collapse.
The money manager rose to prominence for his wager against Lehman, which he outlined in a presentation at a conference in May 2008."
How many times has there been a situation in which the CEO of a prominent company went publically nuts blaming short-sellers for their woes, while exhibiting having no clue about the basics of capital markets and how short-selling works?
And how many of those times has the company not tanked in epic fashion afterward?
Spoiler Alert!
.
.
.
.
.
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Zero.
At least none that we've ever heard of, and we've been at this a long time.
With that experience, and having intensely studied market history going back to "tulip mania", we could post a very long list of companies with CEO's that exhibited this type of irrational behavior and made similar attacks on short-sellers, alleging conspiracies and the like.
Every single time the bears were proven correct.
Every. Single. Time.
Really relevant and worth repeating:
We are short Tesla.
"David Einhorn, a prominent critic of Tesla Inc., bashed the electric carmaker, saying its woes resemble that of Lehman Brothers Holdings Inc. before the bank failed.
“Like Lehman, we think the deception is about to catch up to TSLA,” Greenlight Capital said in a quarterly letter Friday seen by Bloomberg. “Elon Musk’s erratic behavior suggests that he sees it the same way.”
Einhorn pointed to parallels by saying “Lehman threatened short sellers, refused to raise capital (it even bought back stock), and management publicly suggested it would go private” in the months leading up to the bank’s collapse.
The money manager rose to prominence for his wager against Lehman, which he outlined in a presentation at a conference in May 2008."
How many times has there been a situation in which the CEO of a prominent company went publically nuts blaming short-sellers for their woes, while exhibiting having no clue about the basics of capital markets and how short-selling works?
And how many of those times has the company not tanked in epic fashion afterward?
Spoiler Alert!
.
.
.
.
.
.
Zero.
At least none that we've ever heard of, and we've been at this a long time.
With that experience, and having intensely studied market history going back to "tulip mania", we could post a very long list of companies with CEO's that exhibited this type of irrational behavior and made similar attacks on short-sellers, alleging conspiracies and the like.
Every single time the bears were proven correct.
Every. Single. Time.
Really relevant and worth repeating:
We are short Tesla.
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posted by C. Guinness @ 1:52 PM
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