Einhorn is a Tesla bear

David Einhorn is known for being short on Tesla (TSLA). Last November, he referred to Tesla’s peak in the last quarter as being “as good as it gets” for the company.

David Einhorn’s Tesla Bashing Continues

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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.

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