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Tesla Puts Dangerous Products on the Road, Says Einhorn's Greenlight

Tesla Inc.’s ( TSLA ) apparent market leading status in autonomous driving is an illusion fueled by the electric car maker’s willingness to put insufficiently tested vehicles on the road, prominent billionaire investor David Einhorn has claimed.

In a letter to investors, reported on by Business Insider , Einhorn’s $7 billion Hedge Fund Greenlight Capital lashed out at Tesla, dismissing CEO Elon Musk’s claims of technological prowess and predicting that it is only a matter of time before the Palo Alto, California-based company is overtaken by more capable and established auto manufacturers.

While investors continue to believe that Tesla is on the brink of greatness, the New York City-based hedge fund claimed that a closer look at the company’s result statement showed that demand for its cutting-edge products is clearly faltering.

Greenlight went on to add that Tesla has mainly blamed lower gross margin assumptions on costs associated with ramping up the production of its new Model 3 sedan.

The hedge fund believes these problems run even deeper, pointing out that notable price cuts were introduced on its legacy models, with limited success.

READ MORE (Investopedia (blog))

  • David Einhorn beginning to question his investment strategyNew York Post
  • Tesla slammed by Einhorn's Greenlight CapitalMarketWatch
  • Greenlight's Einhorn says Tesla is putting 'dangerous products on the road'CNBC
  • Greenlight's Einhorn Says Tesla Shares 'Deserve Much Worse'
  • EINHORN: The market may have adopted an 'alternative paradigm' for calculating ...Business Insider
  • David Einhorn Is Wondering If Value Investing Even Works AnymoreBloomberg
  • Billionaire David Einhorn Talks “Bubble Shorts” (Tesla, Amazon, Netflix) in Q3 ...Insider Monkey (blog)
  • This Bubble Gets Its 'Alternative Paradigm'Seeking Alpha
  • Hedge Fund Greenlight Bets Again on Micron, Others in Q3: LetterU.S. News & World Report

This post first appeared on The 5th News, please read the originial post: here

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Tesla Puts Dangerous Products on the Road, Says Einhorn's Greenlight


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