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‘Despondent’ Musk’s Tesla resembles Lehman, Greenlight’s Einhorn says

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NEW YORK: Hedge fund manager David Einhorn lambasted Tesla Inc and its “despondent” Chief Executive Elon Musk on Friday, comparing the electric car company to Lehman Brothers Holdings Inc, where he had flagged accounting problems several months before its 2008 collapse. “Like Lehman, we think the deception is about to catch up to TSLA,” Einhorn’s firm Greenlight Capital, which has sold Tesla shares short, said in a quarterly investor letter. “Elon Musk’s erratic behaviour suggests that he sees it the same way.” Greenlight’s letter came one day after Musk, a longtime critic of short-sellers, appeared to taunt the US Securities and Exchange Commission by calling it the “Shortseller Enrichment Commission” on Twitter.


That came just five days after Musk settled SEC fraud charges, in an accord that lets him remain Tesla’s chief executive but requires he step aside as chairman. A judge has yet to approve the settlement. Tesla did not immediately respond to requests for comment. Its shares were down 7 per cent at $262.05 in late afternoon trading. Greenlight is having a difficult year, with its main fund down 25.7 per cent through September, but said its Tesla short position was its second biggest winner in the third quarter. — Reuters


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