DAVID EINHORN: Tesla bulls look at Elon Musk and think of Steve Jobs, but Tesla is not Apple (TSLA, GM, APPL)

pulse

July 17, 2017 2:49 PM

The Tesla stock price doesn't make any sense, Greenlight Capital's David Einhorn says. He argues that Elon Musk is no Steve Jobs and that Tesla is no Apple.

Tesla is no Apple.

That's according to David Einhorn, the founder of the hedge fund Greenlight Capital, who wrote out a litany of reasons he's bearish on Tesla in his firm's second-quarter letter.

"Tesla bulls look at Elon Musk, think of Steve Jobs, and decide Tesla is the next Apple," Greenlight wrote in the letter, which was reviewed by Business Insider.

Greenlight, which is short Tesla, then argued that's not the case:

Greenlight is long GM, meanwhile, and sees the car companies as opposites.

Performance has waned for Greenlight recently, however. The firm's funds dropped 2.8% after fees through the end of the second quarter this year, compared with a 9.3% return in the S&P 500 index, according to its letter.

Investors have since asked to pull some of their money. Greenlight was forced to return $400 million by midyear, The Wall Street Journal reported.

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