Elon Musk and Major Tesla Doubter Decide To Do Battle Via Twitter
Elon Musk's electric car maker Tesla has been surging in recent weeks, and in exactly a month the company has seen its value skyrocket by over 40%!
While bullish shareholders and derivative traders who have been going long in their positions have been making fistfuls of cash, bears (those that actively bet against stock) who have taken short positions or bought puts have been losing untold amounts of money because of $TSLA's (NASDAQ:TSLA) meteoric rise.
Elon has famously and very vocally denounced bears many times before and just as anyone who knows Elon might predict, he just couldn't help himself when it came to rubbing those losses in the face of Tesla's bears.
Here is the tweet in full glorious detail:
— Elon Musk (@elonmusk) November 8, 2019
Elon roasts David Einhorn, a well known Tesla bear, by pointing out the major losses Einhorn has sustained in part because of his bet against Tesla's stock. Einhorn for his part has repeatedly called for Musk's resignation from his position as Tesla's chief executive.
Musk even extends a (most likely sarcastic) invitation for Mr. Einhorn to come and tour Tesla's facilities.
Einhorn, no doubt a prideful man in his own right, wasted little time in crafting an even wordier response to Elon. In short, he calls out what he perceives as questionable accounting practices. For example, he wonders why Tesla is owed $1 billion by customers when most customers pay for vehicles upfront.
Of course, Tesla offers a financing program called "Tesla Lending", so I must question if this is the obvious answer? Surely Einhorn understands that Musk and his company offer to finance the cost of its vehicles to qualified buyers so it's possible that it's a different matter entirely.
Here is Einhorn's response:
— David Einhorn (@davidein) November 8, 2019
This is rather entertaining if we are being objective. Tesla showed real profitability and this was a major improvement. Even ignoring that a chunk of those profits came from accounting changes regarding warranty costs, Elon has rewarded his bulls with a 40% increase in 4 weeks, and bears like David Einhorn are feeling the sting.