A small hedge fund manager threw shade at Tesla’s Elon Musk at a private conference and said the stock is going to zero (TSLA)

0 3

(AP Photo/Marcio Jose Sanchez, File)

A hedge fund manager dissed Tesla at a private investor confab in New York earlier this week.

Mark Spiegel of Stanphyl Capital, a small fund based in New York, pitched a bet against the carmaker at the Robin Hood Investors Conference.

In the 152-slide presentation below, Spiegel says the company faces a rough future, including increased competition from other electric-car makers and doubts about whether competitors will come in to move Tesla out of the market for its battery cells and superchargers.

"Over the next few years, a massive number of long-range electric cars will be on the market, often at prices subsidized by profits from their makers' conventional vehicles, an option Tesla doesn't have," the presentation says. "So pricing pressure on Tesla will be intense."

Spiegel also threw shade on Tesla CEO Elon Musk with a series of comments Musk has made, followed by rebuttals.

For instance:

"Elon Musk, February 2016: 'We do not discount our cars for anyone, including me.'

"Fact: Since July 2015, Tesla has continually run a $1,000 per car discount referral program open to anyone."

It's unclear how much money Stanphyl manages, though it appears to be a small amount. The firm is not registered with the Securities and Exchange Commission, though a Form D filing shows that the firm raised about $4.5 million earlier this year.

Still, an invitation to speak at the event is seen as a coup. The conference brings together top investors to present their best ideas. Speakers at this year's event included Bridgewater's Ray Dalio, Stan Druckenmiller, Greenlight Capital's David Einhorn, Blackstone's Jonathan Gray, Saba Capital's Boaz Weinstein, and Paul Tudor Jones.

Stanphyl isn't the only manager to criticize Tesla or Musk.

"Elon Musk's ability to spin a yarn and keep a story going seems to mesmerize his investors, blinding them to the challenges the company is facing," Einhorn wrote in his most recent letter to investors.

Check out Stanphyl's full presentation:

Stanphyl Capital presentation
Stanphyl Capital presentation
Stanphyl Capital presentation
See the rest of the story at Business Insider

Original Article

You might also like More from author