Einhorn Says Tesla Investors ‘Hypnotized’ in Dot-Com-Like Bubble
- Hedge fund manager skeptical that sales will justify valuation
- Bullish investors reject conventional approach, Einhorn says
QuickTake: Elon Musk Living on the Edge
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Hedge fund manager David Einhorn said markets are too optimistic about Tesla Inc.’s prospects for expanding electric-car sales as stockholders put irrational faith in Chief Executive Officer Elon Musk.
“For the time being, investors remain hypnotized by Tesla’s CEO,” Einhorn said Wednesday in a conference call discussing results at Greenlight Capital Re Ltd., the Cayman Islands-based insurer where he oversees investments. “We are skeptical that the company will be able to mass market its Model 3 at volumes and margins that justify the current valuation.”