David Einhorn says investors fascinated by Elon Musk

Hedge fund manager David Einhorn stated that investors are charmed by Tesla Inc CEO Elon Musk, enhancing the stock by 30 percent in the first quarter, despite the fact that the automaker’s performance did not validate such gains.

Einhorn’s Greenlight Capital hedge fund bet versus Tesla shares throughout the first three months of year, acquiring losses on its short position. Greenlight did not reveal its present position on Tesla.

The fund’s basket of shorts versus what it thinks about to be bubble stocks, consisting of Tesla, harmed its performance during the quarter, Einhorn stated on an earnings conference call for Greenlight Capital Re, the insurer where he manages its investment portfolio.

Einhorn also went over General Motors, its biggest long position, however the car company’s shares increased just 1.5 percent during the first 3 months of this year. “GM trades at a considerable discount rate to its intrinsic value in spite of the company’s strong operating performance,” Einhorn stated.

In March, Greenlight revealed a plan for General Motors to unlock considerable shareholder worth by dividing its common into two classes of common equity.

Einhorn stated by putting what exactly Greenlight believes are conservative evaluations on each part, “it’s easy to obtain a worth that is 27 percent to 79 percent higher than the existing share price”.

“We normally prevent public activism, however in this case management has misrepresented our concept, and we think our fellow investors deserve a chance of new way the merits of our plan for themselves,” Einhorn stated.

For its part, David Einhorn added that Tesla remained a short position for Greenlight.