David Einhorn Sees Profit in Tesla Short With `Unending Losses'
- Einhorn says the electric carmaker faces a ‘demand cliff’
- Hedge fund’s rebound driven by long wagers on GM, Brighthouse
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Hedge fund manager David Einhorn said he expects to make a profit off his short on Tesla Inc. as the electric-car maker faces a “stream of unending losses.”
“We have a negative view toward Tesla,” Einhorn said Tuesday on a first-quarter earnings call for Greenlight Capital Re Ltd., the reinsurer tied to his hedge fund, Greenlight Capital. “We think the stock is overvalued and the risk reward on the long side is exceedingly poor. The company’s business has deteriorated remarkably.”