David Einhorn Still Not-So-Patiently Waiting For Elon Musk’s Spell To Wear Off

It's been a whole week since he warned you, guys. What are you waiting for?
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Last week, David Einhorn patiently explained to his investors—and, by extension, the Church of Elon—that Tesla’s soaring stock price made no sense, and that it would all end in tears, except for short-sellers and General Motors fans like himself, who would be richly vindicated. He didn’t know when it would happen, just like he didn’t know when, exactly, the dot-com bubble would blow 17 years ago. He just knew it had to happen eventually. All of the signs are there.

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And apparently at some point within the ensuing eight days, because when David Einhorn awoke, drove his Honda Odyssey into work and discovered that the mists had still not cleared from the eyes of the loyal Muskovites, that his intervention had not yet broken the spell, that people were still not hearing what he had to say, he had no choice but to repeat it.

“For the time being, investors remain hypnotized by Tesla’s CEO,” Einhorn said Wednesday in a conference call discussing results at Greenlight Capital Re Ltd., the Cayman Islands-based insurer where he oversees investments. “We are skeptical that the company will be able to mass market its Model 3 at volumes and margins that justify the current valuation….”

“The enthusiasm for Tesla and other bubble-basket stocks is reminiscent of the March 2000 dot-com bubble,” Einhorn said. “As was the case then, the bulls rejected conventional valuation methods for a handful of stocks that seemingly could only go up. While we don’t know exactly when the bubble will pop, it eventually will.”

And when it does and you sell, consider sending some of that cash into the stock of GM, an automaker that actually makes money with something approaching regularity.

“GM trades at a significant discount to its intrinsic value despite the company’s strong operating performance,” Einhorn said Wednesday.

Einhorn Says Tesla Investors ‘Hypnotized’ in Dot-Com-Like Bubble [Bloomberg]

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