Hedge fund Greenlight Capital founder questions whether Tesla accounts receivable exist

David Einhorn, founder of hedge fund Greenlight Capital and long-time bear of Tesla, published a letter to Elon Musk, Tesla’s chief executive. In the letter, he questioned the existence of Tesla’s accounts receivable and again asked to meet with the company’s chief financial officer.

Hedge fund Greenlight Capital founder questions whether Tesla accounts receivable exist

Mr. Einhorn said Tesla’s investor relations division had a “very simple” explanation of the accounts receivable he raised. The so-called answer (about European customers paying by cheque on the last day of each month, while American customers usually take two days to settle the bill) can’t even explain half the difference. Moreover, this is inconsistent with Tesla’s explanation of the surge in accounts receivable for the September 2018 quarter, when model 3 was not even available in Europe.

Einhorn said he hasn’t received a response from Tesla’s investor relations division, more than a week after he asked the company to explain the alleged discrepancies in its accounting operations. He said he began to question the existence of Tesla’s accounts receivable.

Mr. Einhorn also reiterated that he hoped to meet with Zach Kirkhorn, Tesla’s chief financial officer, and visit the company’s production facilities.

Einhorn’s hedge fund, GreenLight Capital, has been shorting Tesla stocks in recent months. Tesla’s share spree has risen sharply since it unexpectedly reported third-quarter profit spree in October. But the company’s shares fell friday after Musk unveiled a new pickup concept car that polarised the industry.

Earlier this month, Musk taunted Mr. Einhorn, saying he sympathized with Mr. Einhorn after reading green capital’s third-quarter investor letter.

“Given that Tesla’s success in the third quarter led to a loss, it’s understandable that you want to save face,” Musk said. “

Mr Einhorn said on a November 7 conference call that Green Capital was still shorting Tesla, even though it had had a short-term impact on the performance of its hedge funds. He also said he was surprised by the stock’s rebound because “the company’s growth trajectory appears to be coming to an end with constant negative news”.

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