Einhorn is a Tesla bear
Ready to put your morning scrolling to use? Sign up for Bagels & Stox, our witty take on the top market and investment news straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.
Einhorn’s Tesla bashing continues
Einhorn again bashed Tesla in a recent investor letter, writing, “The wheels are falling off — literally.” The letter cited a February 24 incident where a man driving in Florida was killed after his Model S hit a tree and the “front driver-side wheel severed from the wreck.”
Einhorn recalled concerns faced by other companies, including Samsung, which recalled its Galaxy phones after several combusted in 2016. He also highlighted how Tesla was absent from the consortium formed by GM, Ford (F), and Toyota to establish safety rules for developing, testing, and deploying autonomous vehicles.
Tesla’s underperformance this year
As of April 12, Tesla stock had fallen 19.6% year-to-date, significantly underperforming broader markets (SPY) (IVV) and other automakers (GM). Tesla stock fell 16% in the first quarter. Einhorn’s short bet on Tesla did not go his way last year, as the stock outperformed markets (SPY) (DIA) with a ~7% return. Year-to-date, however, the stock has fallen, boosting the fund.