Investor's Corner
Tesla (TSLA) short responds to Elon Musk’s invite with odd demands and side remarks
Tesla (NASDAQ:TSLA) short and hedge fund manager David Einhorn has issued a response to Elon Musk’s invitation to meet and visit the electric car maker’s facilities. Einhorn agreed to meet with Musk in his response, though he had a number of odd demands and remarks that went along with his acceptance.
Similar to Musk’s letter, Einhorn’s response was long and posted on Twitter via a screenshot. In it, the Greenlight Capital President challenged the Tesla CEO, claiming that while both his hedge fund and Tesla “struggled” last year, his business has generated “real profits for investors” since it was established in 1996. He also denied that his TSLA short has performed badly as well, arguing that it has merely “fluctuated.”
Following is Einhorn’s letter to Musk in full.
@elonmusk #Tesla #TSLA @zerohedge pic.twitter.com/DrMk9SWjlf
— David Einhorn (@davidein) November 8, 2019
Dear Elon,
I am glad that you read our October letter and would like to discuss it. You say we “made numerous false allegations against Tesla.”
-
Could you be more specific? Can you point to at least one sentence that is false and refute it with facts? We certainly are capable of making mistakes and if we said anything false, we will correct it for the record. Facts do matter to us. I can’t imagine how it would feel to have entire websites like https://elonmusk.today chronicling your untruths.
Our business have some similarities and differences. We both struggled last year. However, a key difference is that Greenlight’s business has generated real profits for our investors since we began in 1996. Tesla’s business financials reflect a decade of annual losses and an accumulated deficit of $6 billion, despite billions of dollars of taxpayer subsidies.
As for our short of Tesla, it’s fluctuated. In a multi-year bull market, it hasn’t performed badly. By continually changing the narrative and narrowly averting crisis after crisis, you have certainly kept it interesting. We shall see what happens from here.
We welcome your offer to let us learn more about Tesla and will take you up on it. This is a stark contrast from Tesla’s prior position, as your IR team has refused several requests from us to converse directly and answer our questions.
I think facility visits would be fun (can we start in Buffalo?). I might learn the difference between your alien dreadnought factory and cars made by hand in a tent.
The truth is we are much more interested in, and have many questions about, your financial statements. Perhaps, we could spend some time together with your CFO, Zach Kirkhorn.
As an example, my understanding of auto sales is that car buyers don’t typically drive off the lot without paying for the car. Publicly-traded auto dealers have only a couple days of account receivable balances. Yet, Tesla is owed over $1 billion by its customers. With customers paying up front, why are the balances so high? In September 2018, you said the receivables doubled up because the quarter ended on a Sunday. That answer wasn’t very satisfying at the time. This year, the quarter ended on a weekday. Sales are lower than they were a year ago and yet, the receivables were high. We are curious.
-
We have dozens of questions like that.
I truly appreciate your offer to build a direct communication so we can learn more about Tesla. Please advise on how we should go about scheduling. And have a nice weekend.
David Einhorn
Looking at Einhorn’s response, it appears that the TSLA short is not really taking an open-minded approach in responding to Musk’s letter. Instead, Einhorn seems to be doubling down on his allegations of fraud against Musk with his suggestion that the electric car maker’s finances don’t line up. With such a response, including snide, outdated references to GA4, it would not be very surprising if Tesla does not choose to go forward with Elon Musk’s initial invitation.
This is quite ironic considering that Einhorn himself and his fund, Greenlight Capital, were fined by the UK Financial Service Authority (FSA) for £7.2 million (US$9.27 million) for insider trading. According to the FSA, Einhorn engaged in “market abuse” in relation to a fundraising by pub group Punch Taverns in June 2009. Greenlight has also struggled over the past year, being unable to beat the market and declining 34% last year, its worst year since the fund was founded.
Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.
-
-
SpaceX (NASDAQ: SPCX) reported a beat in revenues and EBITDA in its first earnings call report while also minimizing losses as its business continues to gain momentum.
After its IPO in July, SpaceX saw some tough losses on Wall Street due to a major selloff after a delay in its 13th Starship test flight. The ship launched later that week and completed what was arguably the most successful IFT operation in the Starship program’s history.
Nevertheless, the company is continuing on and reported some encouraging financials while also promoting what appears to be a robust outlook moving forward in its Space, AI, and Connectivity divisions.
SpaceX to report first-ever earnings today: here’s what to expect
Earnings Results
- Revenues: $7.8 billion reported vs. $6.7 billion expected
- Adjusted EBITDA: $3.5 billion vs. $2 billion expected
- Net loss of $541 million, an improvement of $467 million from net loss of $1.0 billion
Additionally, CFO Bret Johnsen had these comments:
“2026 has been a momentous year so far, and the second quarter demonstrated the true power of SpaceX. Revenue growth accelerated across all our business segments and we delivered strong operating leverage, with significant margin expansion led by our new AI compute agreements. Our unparalleled leadership in launch, Starlink subscriber growth, new enterprise and government partnerships, and best-in-class AI infrastructure underscore our ability to drive meaningful scale and deliver attractive returns. As a newly public company, we are delighted to welcome our broad base of shareholders and bondholders. We ended the second quarter with $100 billion of cash, cash equivalents, and marketable securities, and $47.5 billion in backlog. This financial strength gives us substantial capacity to invest in Starship, Starlink Broadband and Mobile satellites, and our AI platform, while maintaining a disciplined long-term capital allocation framework.”
Space Business Highlights
SpaceX shared some of its biggest Space Business Highlights for Q2:
- Space revenues grew 55% sequentially and 29% year-over-year to $962 million, driven by a higher number of large customer launches and a favorable customer shift compared to the prior year
- Total costs and expenses for the Space segment were up by $389 million year-over-year, as we continued to accelerate R&D investments in our Starship program, which we believe will reduce the cost to orbit by 99% or more relative to the historical average, and unlock significant revenue potential across all business segments
- Leading launch provider for the world with 78 launches and 1,041 metric tons of mass to orbit deployed over the six months ended June 30, 2026, primarily allocated to Connectivity for the deployment of our Starlink constellation
- Starship V3 development continued to advance towards full and rapid reusability:
- Completed Starship V3’s first suborbital mission in May, Flight 12, which achieved a successful lift off from our new Starbase pad, a precision landing of Starship’s upper stage, and deployment of modified V2 Starlink satellites
- Subsequent to the second quarter, completed Starship Flight 13 in July, which achieved all flight objectives including deploying 20 production V3 satellites, demonstrating in-space relight of a Raptor engine, and executing the softest ever splashdown of Starship, providing critical views of an intact heatshield
SpaceX will report its earnings today at 4:30 P.M. EDT.
-
Elon Musk issued a second pointed warning to SpaceX short sellers on Tuesday, just hours before the company was set to release its first quarterly earnings as a publicly traded firm. Responding to a report highlighting elevated short interest, Musk wrote on X: “I try to warn them, but they just double down …”
The comment came as data from S3 Partners showed roughly 95 percent of available SPCX shares to borrow were on loan, translating to about 34 percent short interest as a percentage of the float. The stock has traded under pressure since its record-breaking IPO in June 2026, declining significantly from early peaks.
I try to warn them, but they just double down … 🤷♂️
— Elon Musk (@elonmusk) August 4, 2026
This marks the second such message from Musk in under three weeks.
On July 17, amid post-IPO volatility, he stated: “The survival probability of firms who maintain a significant short position in SpaceX over time is very low.” At that time, SPCX had fallen roughly 30 percent from its peak above a $2.6 trillion valuation, with short sellers reportedly realizing gains of about $8.7 billion.
-
Musk’s warning aligned with optimistic analyses projecting that Starship-driven cost reductions could enable a multi-trillion-dollar space economy through applications such as orbital solar power, asteroid mining, data centers, and Mars-related projects, positioning SpaceX as critical infrastructure.
SpaceX is scheduled to report second-quarter results after the market close later today, followed by a webcast. Analysts anticipate revenue near $6.9 billion, reflecting growth in Starlink, launch services, and AI-related segments. The earnings release precedes a major lockup expiration on August 6 that could free hundreds of millions of insider shares.
Musk has a long track record of confronting short sellers, particularly regarding Tesla, where he has argued that persistent bearish positions underestimate transformative technologies. Critics view his optimism as overly ambitious given near-term stock fluctuations, while supporters see temporary dips as opportunities in a longer-term expansion of the space economy.
As SpaceX opens its books to public scrutiny for the first time, the high short interest and Musk’s repeated cautions set the stage for heightened market attention on the results and management’s commentary.
Elon Musk’s space exploration company, SpaceX (NASDAQ: SPCX), is set to report its earnings for the second quarter today in what will be its first-ever earnings call since going public in July.
SpaceX is trading down roughly 25 percent from its IPO. These early stock signals are usually a bit tumultuous, and considering this is the first company actively launching rockets that is available on the stock exchange, investors might have a tendency to be a bit skittish.
However, there are going to be some details that investors will hear for the first time today on the earnings call. Here’s what to look for:
Wall Street Expectations
Revenue is expected to fall somewhere around $6.8 billion, and will be heavily driven by Starlink, which is SpaceX’s widely popular satellite internet platform that has been adopted by numerous airlines, cruise ships, and other maritime operations. It is also available for consumers at home or in their cars.
Earnings Per Share (EPS) expectations fall at a net loss of $0.23 per share. Wall Street sees this as a total net loss of roughly $1.9 billion.
EBITDA is expected to come in between $2 billion and $2.1 billion.
What Investors Want to Know
Tesla uses the Say platform to help work with both retail and institutional investors to answer relevant and quality questions that address concerns or questions that they might have.
-
However, SpaceX is doing things differently, as the company launched its own Investor Relations website where these questions are being fielded. Just like the Tesla questions, they seem to be less focused on the operational tasks and overall progress of the company, and more novelty.
Here are the top five:
- Has the team thought about what possibilities there are with your mascot Asteroid? Whether it’s starting additional foundations for kids in its name, helping kids learn about space, etc. Kids are our future, and Asteroid would be a fun and easy way to help.
- Baby Asteroid is already making a difference through charity around the world. Could SpaceX take it even further with programs that inspire kids to explore space?
- SpaceX has some legendary vehicle names. Would you ever allow the public to name a Starship, even knowing there is a 99% chance it becomes Shipy McShipface?
- When can we expect to see more footage of the Human Landing System?
- Will Asteroid (your mascot) go to Mars?
SpaceX will report its earnings today, August 4, at 4:30 P.M. EDT.
SpaceX reports beat in first earnings while minimizing losses
Elon Musk sends second warning to SpaceX shorts ahead of first earnings
