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Tesla short seller Jim Chanos hit with lawsuit from partner over alleged fund misuse

Credit: Philip Powerss/X

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Aggressive Tesla short seller Jim Chanos has been sued by a partner who is accusing the famed short-seller of using company funds for his personal use. 

Conlon Holdings, an investment firm that invested in Chanos’ firm in 2020, alleged that the famed short-seller treated the company “like a piggy bank” for personal gain, as noted in a Bloomberg News report. The lawsuit was filed in New York State court over the weekend. 

Conlon Holdings’ complaint centered on $10 million in loans that Chanos reportedly borrowed from his firm, Chanos & Co. (formerly known as Kynikos Associates), over more than a decade. Conlon alleged that the short-seller “never intended on paying the company back, but instead planned on using his power as general partner to run the company into the ground, enjoy the tax benefits of his financial shenanigans, and leave his partners with nothing.”

The suit further claimed that Chanos had sold a luxury Miami apartment owned by Chanos & Co. for $17.8 million without informing his partners. The sale reportedly resulted in Chanos’ girlfriend, Crystal Conners — who was the sales agent in the deal — earning $540,000 in commission. “In other words, Chanos not only sold the company’s property but did so in a way that he could pay his girlfriend more than half a million dollars of money that did not belong to him,” the suit noted. 

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Jim Chanos, for his part, has denied the allegations, dubbing Conlon’s lawsuit as ”puzzling and baseless.” “The facts will show that the internal loan in question from the company was paid off in 2021,” he noted. Interestingly enough, Chanos’ former chief financial officer Brian Nichols noted in an affidavit that his boss acknowledged that the loan was still outstanding as part of his tax return in 2022. 

Conlon Holdings is looking to prevent Chanos from accessing the proceeds from the Miami apartment sale. Conlon is also demanding that Chanos be removed as general partner of his firm.

Chanos’ fame stemmed from successfully shorting Enron stock in 2000. He was also one of Tesla’s most aggressive critics, announcing in 2017 that he believed the electric vehicle maker’s equity was worthless, and that his price target for TSLA stock was zero. By 2018, Chanos claimed that the Model 3 was “looking to be a lemon.” 

Needless to say, Chanos was unsuccessful in his efforts to short Tesla, and last year, he announced that he was closing his fund. His fund has gotten substantially smaller, dropping to less than $200 million in 2023 from $8 billion in 2008. Elon Musk, for his part, commented on Chanos’ recent legal troubles, noting that the short seller did not just bet against Tesla — he also pushed false narratives that the media embraced. 

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla patent reveals strategy for solving major Full Self-Driving, Optimus issue

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Credit: Tesla

A new Tesla patent that has been granted to the company this week has revealed a potential strategy for solving a major issue that could impact both the Full Self-Driving suite and Optimus.

The patent, which is No. 12,636,684, describes a “Lens Cleaning System,” and was submitted by Tesla in May 2025.

The language in the patent details a lens cleaning system that can dispense fluid and wipe it away with a wiper assembly.

This would effectively clean any debris that would potentially impact the visibility of the cameras on Tesla automobiles or Optimus’s camera eyes. Perhaps the most pertinent example is through the Full Self-Driving suite, as debris that can accumulate on the vehicle’s exterior cameras can impact the suite’s ability to operate effectively.

This requires a remedy through manual cleaning, but this patent hints that Tesla could be planning to implement this new technology on its upcoming vehicles.

Interestingly, we have started to see it on some Robotaxi vehicles, and it will likely be included in the Cybercab, especially as that vehicle will enable full autonomy.

Back in January, the first Model Y Robotaxi units were spotted with camera washers on the side repeaters, as the video below shows fluid squirting and rinsing off any debris that is limiting visibility.

This hardware patent does bring up an interesting question for those of us who own Teslas with AI4 and have been told that our cars will one day be capable of full autonomy: Will this washer be available as a retrofit on already-built cars?

Perhaps the “Lens Cleaning System” patent is a good look at one way Tesla plans to combat one of the most obvious issues of autonomy that utilizes a camera-based system. For Optimus, it could be less needed as it could be manually cleaned by owners. For cars, it seems like a bigger necessity, especially as autonomy nears and Tesla gets close to launching a feature-complete FSD suite.

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SpaceX Starlink gets its latest airline adoptee, grabbing three of the ‘Big Four’

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Credit: American Airlines

SpaceX’s Starlink product has just gotten its latest airline adoptee, and the move marks the successful partnership of three of the “Big Four” U.S. airlines.

American Airlines announced on Tuesday that it would utilize Starlink in more than 500 narrowbody aircraft beginning in the first quarter of 2027. These include the Airbus aircraft in its fleet, including the new A321XLR and A321neo.

With the new partnership with American Airlines, Starlink is now present on three of the largest airlines in the country: American, United, and Southwest.

Starlink gets its latest airline adoptee for stable and reliable internet access

Starlink’s VP of Enterprise Sales, Jason Fritch, said:

“We are proud to bring Starlink on board American Airlines, delivering fast and reliable internet to passengers and crew. Whether traveling for leisure or business, Starlink enables a fully connected experience gate to gate, making every flight smoother and more enjoyable.”

Additionally, American Airlines Chief Customer Officer, Heather Garboden, said:

“As a premium global airline, we are continuously seeking out world-class partners like Starlink to deliver what our customers need and want. The addition of Starlink solidifies American as a leading airline in keeping passengers connected in flight.”

Starlink has been on a tear over the past year, as it has continued to be adopted by a wide variety of airlines as a more consistent and reliable way to provide WiFi to its passengers. It has already gained a great reputation among residential users, but its biggest commercial application appears to be how it is being used in the air.

The only airline of the Big Four not to adopt Starlink thus far is Delta, which chose to opt for the alternative, which is Amazon Leo. CEO Ed Bastian said to Bloomberg that Delta chose Amazon’s product over Starlink’s because “the opportunities, in terms of the improved bandwidth with a much lower price point than what we’ve ever seen from Starlink, will make a big difference.”

Delta will not start installing Amazon Leo until 2028.

“Of course, we expect Starlink will be warning people that we’re going to go with an inferior product,” Bastian said. “But I’m not too worried about partnering with Amazon.”

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Tesla Cybertruck’s newest trim is nearing its first deliveries

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Credit: Joe Tegtmeyer | X

Tesla Cybertruck’s newest trim level is nearing its first deliveries just a few months after being offered for an incredible deal.

Back in February, Tesla officially launched a new trim of the Cybertruck, the All-Wheel-Drive, starting at just $59,990. It was a lot of truck for the money, especially considering what it offered the Rear-Wheel-Drive variant for last year, which was a total flop.

The $59,990 price that was offered initially was a deal due to its 325-mile range rating, powered tonneau, three bed outlets, Powershare capability, coil springs with adaptive damping for a refined suspension feel, Steer-by-Wire and four-wheel steering, a 6′ x 4′ composite bed, towing capacity of 7,500 pounds, and a powered frunk.

Tesla is now nearing deliveries of this trim, according to watcher Sawyer Merritt, as Tesla has officially started assigning VINs to people who ordered the vehicle initially:

Earlier this month, we reported on units of the trim being spotted outside Gigafactory Texas by Joe Tegtmeyer.

Tesla Giga Texas buzzing as new Cybertruck appears to enter production

This Cybertruck trim was interesting because it was released basically out of nowhere, priced incredibly well, and gathered many orders in a small amount of time. However, CEO Elon Musk noted just days afterward that the vehicle would only be priced at this bargain level for ten days.

Tesla fans were not happy.

However, the issues with the pricing strategy have blown over since the February unveiling event, and now that deliveries are near, Tesla fans are anticipating the truck making its way to their driveways soon.

The truck is currently priced at $69,990, and deliveries for new orders are slated for between August and September 2026.

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