Everything David Einhorn’s Been Saying About Tesla Came True And He Still Lost Money

The Greenlight Lantern may never defeat supervillain Elon Musk.
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This was it. It was finally happening. For years, David Einhorn has been telling anyone who’d listen that Tesla was a fraudulent mirage and a fever dream certainly not worth as much as his preferred car-maker stock, GM. It didn’t work. Worse, in his fervor against all things Elon Musk, he stood at risk of becoming what he most loathed: Bill Ackman.

einhorn-cosmic

At last, however, the spell was lifting. Elon Musk had killed somebody, and Tesla stock was tanking. Amazon and Facebook and all of the other stocks that were making it feel like 1999 all over again, too. And not a moment too soon, as Einhorn’s Greenlight Capital was just days from closing the books on one of its worst-ever quarters. Things were finally starting to make sense again. Right?

Wrong.

In an analysis of his largest stock wagers, Einhorn said his 20 biggest long positions fell 5.6 percent, and his 20 largest shorts fell 5.5 percent. Greenlight’s flagship fund dropped about 14 percent in the first quarter, Bloomberg reported Friday.

“It is difficult to explain what caused the results,” he said in the letter.

“In our history, we’ve had five other quarters with a greater than 5 percent loss,” Einhorn wrote in a letter to investors. “In four of those, there were clear world or market events that provided a simple explanation, and in one, a few positions in our portfolio went wrong at the same time.

“This period has not been like any of these,” he added.

Einhorn Lost Money on Long and Short Wagers in First Quarter [Bloomberg]
Einhorn mystified by Greenlight Capital’s big Q1 loss [N.Y. Post]
David Einhorn, in search of lost time [FT]

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