On Friday, Tesla, Inc. (NASDAQ: TSLA) Chief Executive Officer fired back at hedge fund Greenlight Capital’s founder David Einhorn over his short position on the Company.
Musk responded to a tweet from earlier this week on Monday, which Einhorn, whom he addresses as Mr. Unicorn in the letter, accused Musk of “significant fraud.”
In a letter posted on Twitter, Musk, which he addressed himself as Treelon Musk, pointed out the losses that Greenlight has suffered recently due to its short position against Tesla.
While Tesla’s shares have only increased by 0.81% this year, the stock has been on a complete bull run the past month since its third quarter financial results. In the past 5-days, Tesla stock has risen by 7.08%, while in the past month, the stock witnessed a 39.82% growth.
“It is understandable that you wish to save face with your investors, given the losses you suffered from Tesla’s successful third quarter, especially since you’ve had several down years in performance and a sharp drop in assets under management from $15 billion to $5 billion. You have our sympathies,” Musk wrote in the letter.
In a letter to clients, Einhorn acknowledged that his Tesla shorts impacted Greenlight’s returns for the quarter. Greenlight Capital fund returned 5.6% in the third quarter and are up 24% this year.
Einhorn accused that Tesla “continued to spin positive PR ahead of the safety and fair treatment of its customers.” Moreover, Einhorn also alleged that Musk “knowingly orchestrated a significant fraud by arranging the $2.6 billion acquisition at a time when SolarCity was insolvent. Musk and his family had a huge conflict of interest, but rather than properly recusing himself, Musk initiated the transaction and drove the process.”
While Musk did not directly address Einhorn’s accusations, he extended an invite to Einhorn to discuss Tesla as well as tour its facilities.
“To the extent that you have any desire to learn about the amazing progress the people of Tesla are making, I would like to extend an open invitation to meet with me to discuss Tesla and tour our facilities,” wrote Musk. “For their sake, I’m certain your investors would appreciate you getting smart on Tesla.”
Musk ends the letter by mentioning he will send a small gift of “short shorts” to help Einhorn “through this difficult time.”