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Who Wears Short Shorts: David Einhorn’s Ghost Hunt for Tesla’s Weakness

Credit: Twitter | David Einhorn

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Death, Taxes, and David Einhorn complaining about Tesla being successful.

Those are the three certainties in life. And like clockwork, after Tesla announced yet another successful quarter in the books yesterday during its Q1 2020 Earnings Call, Einhorn was right there trying to accuse Elon Musk or Zachary Kirkhorn of fraudulent behavior. But, let’s face it, a guy who lost 21.5% for his clients in Q1 2020 has to cast stones at someone, and it might as well be someone who is doing well, right?

I know those first two tidbits of information sound harsh; they are honestly supposed to. But I will admit, I wasn’t always an Einhorn skeptic. In my spare time, I’m a poker player, and Einhorn is too, and he’s a successful one. And it is hard for a poker player not to like him, considering all of his winnings get donated to charity. With over $5.2 million in live cashes, a majority of that coming from a massive cash at the $1 million buy-in One Drop tournament at the World Series of Poker. That’s a lot of money to a good cause.

So I admit, David Einhorn is not all that bad of a guy. But he continues to play the villain in Tesla’s successful string of quarters, continually accusing the company and its executives of not playing by the rules. But hey, to each his own.

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Every single time Tesla has a successful quarter, Einhorn seems to be stalking the company’s Update Letter like a tiger waiting for its prey. However, tigers usually are successful when they see potential food, and Einhorn just continues to sit there and look more like the prey at this point.

On the 30th of April, Einhorn tweeted another note toward Elon, asking him to justify Tesla’s accounts receivable. “Tesla’s claim for why there are so many for a product where the customers pay upfront, was that sales are crazily concentrated in the last days of the month–so much so that it matters if the month ends on a weekend. This quarter ended on a Tuesday,” he wrote.

Einhorn continues to come off like an obsessed ex-girlfriend, always worried about what Elon puts online, and makes extended digs toward the CEO of Tesla and his employees. But I guess what do you have to say for yourself when the stock you notoriously short continues to rise and your investors continue to lose money on your behalf.

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Is it not all possible that Tesla experienced minimal financial loss even though Fremont was shut down for about a month at the tail end of the quarter? Is it at all possible that the most successful Q1 in company history had something to do with the fact that Tesla’s production rates are higher than they were a quarter ago? That another factory in the biggest auto market in the world is also churning out electric vehicles and selling them at higher numbers than any other vehicle in the market? That the same exact factory in that auto market is producing a car that had a 450% increase in registrations from February to March, despite the entire car industry falling?

This, to me, looks like Einhorn is using a typical case of what is called confirmation bias. He accused Tesla, in his brief note on Twitter, of fudging the numbers. But the problem is, the information is readily available out there on basically any site that covers electric vehicles.

Let me break it down for you this way, Einhorn. I’ll even use poker terms! Tesla is experiencing an upswing in China, and the rest of the market is experiencing a downswing. Every other company is managing to lose money because nobody is buying their cars, even though production is continuing. Tesla is making money because they continue to sell the Model 3 in astoundingly high numbers.

Not only has Tesla made the Model 3 one of the most appealing cars in all of China, but they’re beginning to offer different variants. Before it was just the SR+, now there’s a Long Range and a Performance variant. Tesla even announced that the white interior is available for the Model 3 now, which could be a big deal for some.

Tesla’s Q2 might be a little bit rougher than Q1, especially if Fremont’s shut down continues until June, as reports have suggested. Perhaps Einhorn should have just taken Q1 on the chin, gotten rid of his “TSLAQ” title, and left the likes of other short sellers Jim Chanos in his rearview mirror. After all, David, it is not too late to get your hands on some beautiful TSLA stock. I hear its lovely to own some!

Part of me hopes that one day, Einhorn heads out to Silicon Valley, meets up with Elon for lunch and a tour, and switches sides, all in those short shorts that Musk sent him a few months back. After all, Tesla is fighting for the future of our planet, and short selling the stock is primarily environmental terrorism considering the company’s goal is to keep the Earth going.

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Maybe one day, I’ll get to sit across from Einhorn at a poker table. If I do, I promise to ask him when he’s going to stop shorting TSLA and begin to believe the Master Plan. But if I don’t, I surely won’t lose sleep over it.

After all, I won’t be the one wearing vintage short shorts.

Credit: Twitter

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Elon Musk

Elon Musk drops a surprise update on Boring Company’s next big dig

Musk says Boring Company could shrink the Austin to San Antonio drive to just minutes.

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Elon Musk says The Boring Company is working on what he called “a simple, precursor Hyperloop” tunnel connecting Austin and San Antonio, targeting speeds above 200 mph and cutting a drive that can take up to two and a half hours down to a consistent under 30 minutes. Musk posted the idea on X Sunday, in a reply to a repost of an AI generated video imagining a science fiction future with human colonies on other worlds, which he shared with the line “This is the future we shall bring into being.”


The Boring Company’s own account picked up the idea in the same thread, adding a detail about how the trip would actually work: “Because Loop/Hyperloop is express (i.e. no intermediate stops), one could travel from an Austin parking lot to a favorite San Antonio restaurant in about 30 minutes. As long as they both have Loop stations.” That framing ties the proposed intercity link to the same station model the company already runs in Las Vegas, where riders enter the tunnel network through small, garage style stops rather than one central terminal.

This is not the company’s first run at the Austin to San Antonio corridor. Boring Company floated tunnels between the two cities as far back as 2021, and later competed for a separate San Antonio Loop project tied to the airport before that specific bid stalled. Pitches for tunnels in Chicago, Los Angeles, and a New York to Washington corridor have followed a similar pattern of big announcement without a shovel in the ground.

What is different this time is the balance sheet, especially since The Boring Company closed a 3 billion dollar funding round led by investors in the United Arab Emirates earlier this month at a valuation near 23 billion dollars, giving the tunneling company more capital to chase speculative projects than it had during its earlier Texas pitches. The company is also mid-build on two other intercity systems it has actually broken ground on, inc;luding a Nashville tunnel linking downtown to the airport, where a second boring machine finished commissioning in June, and its Las Vegas network, where the station count keeps climbing on paper faster than tunnels get dug.

That gap between announcement and execution is the reason to treat Sunday’s post as an opening bid rather than a project. A tunnel spanning roughly 80 miles between two metro areas, running at speeds Boring Company has not demonstrated over any real distance, would dwarf anything the company has built. For now, the Austin to San Antonio Hyperloop exists as a caption under an AI generated space video.

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Tesla eyes supply partners for Optimus mass production

Tesla certified three Chinese suppliers for Optimus mass production, signaling its robot timeline is accelerating.

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Concept rendering of Tesla Optimus in mass production

Tesla’s robotics team traveled to Ningbo, in China’s Zhejiang province, on September 16 and spent the following day auditing component suppliers for Optimus, according to a Bloomberg report cited by RobotAIGeek. The visit moved three manufacturers from provisional status to certified mass production partners: Tuopu Group, which handles actuators and chassis components, Ningbo Joyson Electronic, a sensor supplier, and Zhejiang Sanhua Intelligent Controls, which builds thermal management systems. All three already supply parts to Tesla’s electric vehicles, and the audit reportedly came with fresh orders that supply chain reports put at an initial batch of roughly 5,000 units.

Tuopu, Joyson, and Sanhua built their manufacturing base serving the automotive industry, where tolerances and volume requirements are already close to what a mass produced humanoid robot demands. Sanhua in particular has history here. Teslarati reported last October that the company had received a roughly $685 million order for linear actuators tied to Optimus, a volume industry watchers estimated could cover around 180,000 robots once production ramped.

Supply chain reports tied to this week’s audit put Tesla’s near term production goal at about 1,000 Optimus units a week by late September, rising to 2,000 to 2,500 units a week by the end of the year. That pace would put real weight behind the timeline Tesla has been building toward since May, when it wound down Model S and Model X production at Fremont to convert that floor space into a dedicated Optimus line targeting one million units annually. JPMorgan analysts who toured the factory in August confirmed the conversion took roughly four months, a pace Musk has called unprecedented for a facility that size.

New drone video shows Tesla’s Optimus Factory reaching a turning point

Fremont is only the first phase. A second, larger Optimus plant is rising at Gigafactory Texas, where drone footage shared by Joe Tegtmeyer last week showed the structural steel nearing completion on the north end of the building. Tesla has said that facility is meant to eventually support production of up to 10 million units a year, though volume output there is not expected before 2027.

Commercial sales of Optimus are still targeted for the second half of 2027, but production is expected to start well before then. JPMorgan analyst Rajat Gupta has said Tesla’s “Optimus Academy” program, which uses early units to collect real world training data inside Tesla’s own facilities, is expected to be running later this year. Bloomberg Intelligence analyst Ian Ma described the Ningbo audits as “a positive commercialization signal for China’s humanoid supply chain,” noting that sentiment could improve further if the visit leads to confirmed supplier nominations and larger orders. The Solactive China Humanoid Robotics Index rose about 1.4% on the news, though it remains down roughly 30% for the year.

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Tesla primes Cybercabs for 4K streaming and high bandwidth gaming with Starlink integration

Tesla is now shipping Cybercabs from Giga Texas with Starlink hardware built in as standard.

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tesla cybercab with no manual controls showing a movie with two employees inside

Tesla’s Cybercabs are now leaving Gigafactory Texas with Starlink hardware on the rear hatch in significant numbers, according to drone footage captured Tuesday by longtime Austin drone observer Joe Tegtmeyer. Production at the factory ramped back up after the Labor Day weekend, and his flyover of the outbound lot showed rows of gold Cybercabs alongside Model Y Long Wheelbase units, many carrying the satellite module for the first time as standard equipment rather than a one off retrofit.

Tesla first showed Starlink built into an actual Cybercab on August 10, when the Robotaxi account posted images of a single gold unit with the antenna integrated into the roofline above the taillights and called it the first Cybercab with Starlink integration. That followed a July reveal where Tesla and Starlink jointly posted a cutaway diagram of the antenna placement without a working vehicle to back it up. Ashok Elluswamy, Tesla’s VP of AI software, said at the time that the connection isn’t required for the car to drive itself. It exists mainly for navigation, customer service and keeping tabs on the fleet.

Musk has made a different case in public. During Tesla’s Q2 earnings call, he said the company can’t afford robotaxis stranded in what he called “Bermuda Triangles of lack of cellular connectivity,” and he separately claimed on X that Starlink will eventually reach every Tesla built, calling it the only way to deliver high bandwidth to billions of vehicles. He has also pitched the antenna as an entertainment upgrade, telling riders they would be able to stream 4K video or play games during a trip.

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The rollout has moved fast since. Robotaxi service opened to the public in Austin on September 3, and Cybercabs had already been spotted with Starlink hardware in Houston and near Miami International Airport in the weeks before Tuesday’s factory footage showed the module shipping at volume rather than on scattered test units. Whether the satellite link earns its keep is still an open question. Tesla’s unsupervised service currently runs in dense metro geofences in Texas and Florida, markets where cellular coverage is already strong, which is not where the rural dead zones Musk describes tend to show up.

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