SpaceX founder Elon Musk responds to a post-launch news conference after the SpaceX Falcon 9 rocket carrying the Crew Dragon spacecraft was lifted on an unannounced test flight to the Kennedy Space Center International Space Station in Cape Canaveral, Florida, 2 March 2019.
Mike Blake | Reuters
Tesla founder Elon Musk has kicked back at one of his biggest hedge fund opponents, and ridiculed Greenlight Capital founder David Einhorn in a letter shared on Twitter for his position against the electric car maker.
Musk addresses Einhorn as "Mr Unicorn" and himself as "Treelon" and pointed out the losses that Greenlight has suffered because of his brief stance against Tesla.
While the company's shares are barely positive for the year, they have been falling apart lately since the company shattered third-quarter earnings estimates more than two weeks ago. The stock is up 7.1
"It is understandable that you want to save face with your investors, given the losses you have inflicted on Tesla's successful third quarter, especially since you have had several years back in performance and a sharp decline in managed capital from $ 15 to $ 5 billion , "Musk wrote. "You have our sympathies."
CNBC has reached Greenlight for comment.
Several Short Shorts
In his quarterly letter to clients, Einhorn acknowledged that his Tesla position was bumping Greenlight & # 39; s return for the quarter, which was otherwise solidly positive. The Greenlight Capital funds returned 5.6% in the third quarter and are up 24% to date, according to the letter. However, in 2018, the company had the worst year since Einhorn founded Greenlight in 1996, losing 34%.
Einhorn charged that Tesla "continued to spin positive PR in front of security and fair treatment of customers." He also alleged that Musk "deliberately orchestrated a significant scam by arranging the $ 2.6 billion acquisition at a time when SolarCity was insolvent. Musk and his family had a huge conflict of interest, but rather than recycle themselves, Musk initiated the transaction and ran the process. "
SolarCity was founded in 2006 by Musk's cousins and his brother is a member of the boards of both companies.
For his part, Musk did not address any of the specific allegations, but invited Einhorn to visit Tesla's production facility to find out how well the company is working.
Musk said he acknowledges "your desire to feel relevant somehow," but added that "the world increasingly recognizes Tesla's contributions to science, security and a sustainable environment."
"To the extent that you have any desire to learn about the amazing progress the Tesla people are making, I would like to extend an open invitation to meet with me to discuss the tea and tour of our facilities," Musk said. "For their sake, I'm sure your investors will appreciate that you got smart at Tesla."
He closes the letter by saying that he will send a "short shorts" gift to Einhorn, which he also did in August 2018.