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Greenlight Capital's Einhorn Questions Tesla Numbers Again

Stock MarketsApr 30, 2020 11:07AM ET
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© Reuters.

By Kim Khan

Investing.com - Hedge fund manager David Einhorn tweeted out Thursday another letter sent to Tesla (NASDAQ:TSLA) CEO Elon Musk questioning the automaker’s financial results.

Greenlight Capital founder Einhorn, who tweeted out a letter in November questioning whether Tesla’s accounts receivable “even exist,” tweeted out another letter today asking for explanations about its auto gross margin reported yesterday.

“This quarter your production was lower and split across two factories, affecting cost absorption, particularly in Fremont,” Einhorn wrote. “Your average selling price was lower. Your mix had fewer high margin models S/X. You ramped up Model Y. Both factories were interrupted driving up costs. And, though you didn’t discuss it, currency should have hit your margin 2-3% compared to last quarter.”

“All of these factors appear to be headwinds to your auto gross margin (excluding Regulatory credit sales) – which barely budged,” he said.

Tesla reported first-quarter auto gross margin of 25.5%, up from 22.5% in the fourth quarter.

Shares of Tesla rose 4.3% in morning trading.

Greenlight Capital's Einhorn Questions Tesla Numbers Again
 

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Comments (16)
Havoc Revel ations
Havoc Revel ations Apr 30, 2020 12:40PM ET
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🤣 so long story short he's asking a businessman how he makes money with his business
Andrew Field
Andrew Field Apr 30, 2020 12:40PM ET
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No, he's raising legitimate queries/concerns re the accuracy of Tesla's books.
George Vincent
George Vincent Apr 30, 2020 12:33PM ET
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Corps are going to falsify earning to keep share price up. House of cards will collapse.
Winston Lim
Winston Lim Apr 30, 2020 12:02PM ET
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Why bother entertaining losers (Einhorn)? Just ignore naysayers.
Junho Ko
Junho Ko Apr 30, 2020 12:02PM ET
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the profit can be easily manipulated unlike sales . I bet Tesla report is not good
Jiyun Xu
Jiyun Xu Apr 30, 2020 12:02PM ET
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You guys just have no idea how much sucessful Tesla is in China.
Ralph Merry
Ralph Merry Apr 30, 2020 12:02PM ET
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Do you have a feeling on how successful they will be? I haven't been in China since Tesla's early days and that was astonishing.
robby janssen
robby janssen Apr 30, 2020 11:57AM ET
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Short Einhorn is losing his shorts on Tesla, so he spreads FUD without any proof? How surprising...
Viktor Velichkov
Viktor Velichkov Apr 30, 2020 11:57AM ET
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The burden of proof is on Tesla, a company that repeatedly has lied to consumers and analysts alike. Einhorn is a loser but Elon Musk is a proven liar.
steven gitt
steven gitt Apr 30, 2020 11:57AM ET
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maybe they used the same accountants as these chinese government uses
Junil Amin
Junil Amin Apr 30, 2020 11:43AM ET
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1) Margins are model Y are higher2) costs associated with china production are much lower, parts and labor are much cheaper. You can not compare fremont cost and margins with chinas.
Jonny Tjenurdin
Jonny Tjenurdin Apr 30, 2020 11:42AM ET
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all fake report. just for manipulate market.
Ali Al Samarraie
Ali Al Samarraie Apr 30, 2020 11:40AM ET
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exactly! from where they got there profit! something fishy on the P/L sheet
Ion Alexuta
Ion Alexuta Apr 30, 2020 11:37AM ET
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This boy know his job very well, Elon you should hire me and we will take it to the sky... well he already did that
Chris Sundo
Chris Sundo Apr 30, 2020 11:37AM ET
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Don't they have big 6 audited reports? WishyWashy accounting should not exist in multi-billion cap companies. Financial results must be up to date and reliable
Dakaize Dakaize
Dakaize Dakaize Apr 30, 2020 11:37AM ET
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q1 is unaudited
robby janssen
robby janssen Apr 30, 2020 11:37AM ET
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Einhorn and all the other shorts have been screaming fraud, manipulation, etc etc for years without any proof, despite Tesla being audited year after year by externals regulators. It's getting old and nobody believes at as you can see in the SP
Alex Malmstrom
BrassTacks1 Apr 30, 2020 11:34AM ET
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Kind of starting to get the impression that Tesla is a Ponzi scheme. Then again, it being electric and all, therefore in line with the green agenda, exact figures don't matter.
Mart Bab
Rubberduck1973 Apr 30, 2020 11:34AM ET
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Not a friend of Tesla. But not a friend of your BS either. Go conspire somewhere els.
Romulus son of Mars
Romulus2020 Apr 30, 2020 11:33AM ET
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I smell investigation
robby janssen
robby janssen Apr 30, 2020 11:33AM ET
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I smell your BS and FUD, nobody believes it anymore
David Walkush
David Walkush Apr 30, 2020 11:32AM ET
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2 smart guys. 1 super rich by using gov. as a piggy bank and the other charging exorbitant fees. Goals.
Jeremy Williams
Jeremy Williams Apr 30, 2020 11:31AM ET
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Trump and Musk should hit the links and laugh over the lies they have convinced people are true.
Valor Finance
ValorFinance Apr 30, 2020 11:28AM ET
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Accountants at arms.
 
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