Brad Cornell teaches financial economics at Caltech. He also happens to manage a hedge fund. And when it comes to Tesla, he’s by no means a bull. He still believes Tesla is overvalued. However, much like short-seller Andrew Left, he’s becoming disillusioned with EV efforts from legacy automakers.
All innovative companies attract negative press coverage, but the tide of anti-Tesla scare stories and misinformation has reached such preposterous proportions that it has become a story in itself (remember, colleagues, we’re supposed to report the news, not make it). It’s widely believed that much of the mud, especially the articles that focus on financial and stock-market topics, originates with short sellers, who have collectively bet some $12 billion against the California carmaker.
Greenlight Capital has now lost 11.9% this year, with 6% of that coming in February, Einhorn recently revealed to the hedge fund’s clients.
Even major oil investors are now making bets that plug-in electric vehicles are here to stay. As an example, the oil-focused hedge fund firm Westbeck Capital is now actually slated to launch an “electric vehicle hedge fund,” the company has revealed.
