Tesla (NASDAQ:TSLA) brief and hedge fund director David Einhorn has issued an answer to Elon Musk’s invitation to meet and also visit the electric car manufacturer ’s facilities. Einhorn agreed to meet Musk in his response, though he had.
Comparable to Musk’s name , Einhorn’s answer was posted and long on Twitter through a screenshot. In it, the Greenlight Capital President challenged the Tesla CEO, asserting while his hedge fund and Tesla “fought season, his firm has established profits for investors” because it was established in 1996. In addition, he denied that his TSLA brief has played badly as well, asserting that it has only “fluctuated. ”
After is Einhorn’s letter to Musk in complete.
@elonmusk #Tesla #TSLA @zerohedge pic.twitter.com/DrMk9SWjlf
— David Einhorn (@davidein) November 8, 2019
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Dear Elon,
I am glad that you read our October letter and would love to discuss it. You state we “made lots of false allegations against Tesla. ”
Would you be specific? Would you point to at least one sentence that is untrue and refute it with facts? We are capable of making mistakes and we will fix it, when we said something untrue. Facts do matter to us. I can’t imagine how it would feel to have whole sites like https://elonmusk.today chronicling your untruths.
Our company have some similarities and differences. Last year we struggled. But a vital distinction is that Greenlight’s firm has generated profits for our investors because we began in 1996. Tesla’s company financials reflect an accumulated deficit of $ 6 billion dollars and a decade of annual losses , even though billions of dollars of taxpayer subsidies.
As our short of Tesla, it s fluctuated. In a multi-year bull market, it hasn’t done. By always changing the story and narrowly averting crisis after crisis, you’ve kept it fascinating. We shall see what happens from this.
We welcome your deal to let’s learn about Tesla and will take you up on it. That is a stark contrast from Tesla’s prior position, as your IR team has denied several requests to converse right and answer our queries.
I think facility visits would be fun (can we begin in Buffalo? ) ) . I might learn cars and the gap between your dreadnought mill that is alien.
The truth is that we are far more interested in, and also have many questions concerning, your announcements. We can spend some time together with your CFO, Zach Kirkhorn.
As an example, my understanding of automobile sales is that car buyers overlook ’t without paying for the car drive off the lot. Publicly-traded auto dealers have just a few days of accounts receivable balances. However, Tesla has been owed over $1 billion with its own customers. Why are the balances large with customers paying up front? Back in September 2018, you said the receivables awakened since the quarter ended on a Sunday. That answer wasn’t very satisfying at that moment. This season, the quarter finished on a weekday. Sales are lower than they were a year ago and yet, the receivables were large. We are curious.
We have dozens of questions like this.
I appreciate your deal to build an immediate communication so we are able to find out more about Tesla. Please advise on how we must go on scheduling. And have a nice weekend.
David Einhorn
Considering Einhorn’s answer, it looks like the TSLA brief is not really taking an open-minded method in responding to Musk’s letter. Instead, Einhorn appears to be doubling down on his allegations of fraud against Musk with his proposal that the car manufacturer ’s finances don’t line up. With such a response, for example obsolete references to GA4, it would not be that surprising if Tesla doesn’t decide to go with Elon Musk’s initial invitation.
This is quite ironic considering that Einhorn himself along with his fund, Greenlight Capital, were fined by the UK Financial Service Authority (FSA) for pound;7.2 million (US$9.27 million) for insider trading. According to the FSA, Einhorn participated in “market misuse ” in Connection with a fundraising by pub group Punch Taverns at June 2009. Greenlight has fought over the past calendar year, being unable to beat on the industry and decreasing 34 percent last year, its worst season since the fund was founded.
Disclosure: I have no ownership in shares of TSLA and have no plans to commence any positions.
The article Tesla (TSLA) brief responds to Elon Musk’s invite with strange demands and side remarks appeared first on TESLARATI.
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