NEW YORK: David Einhorn's Greenlight Capital renewed criticism of Elon Musk and his Tesla Inc, saying the electric car company again appeared to be on the"brink" of failure, according to a letter sent to clients of the hedge fund on Friday.
The letter cited a lack of demand,"desperate" price cuts, layoffs,"closing-and-then-not-closing" stores, closing service centers, slashing capital expenditures, rushed product announcements and"a new effort to distract investors from the demand problem with hyperbole over TSLA's autonomous driving capabilities.""We believe that right here, right now, the company appears to again be on the brink," the letter said.
Greenlight noted that last summer, Musk promised Tesla would be profitable and cash flow positive in every quarter going forward."He repeated that forecast as recently as the end of January," Greenlight pointed out."That promise has failed to materialize.
Based on what? An already known fact is that David Einhorn's Greenlight is a failure. Ask their investors...! Why are you promoting such TSLA FUD nonsense?