David Einhorn Slams Elon Musk, Central Bankers In His Latest Letter

Tyler Durden's picture

In David Einhorn's latest letter, in which we find that Greenlight had a solid quarter in Q3, generating a 3.4% return which boosted the hedge fund's YTD return to 3.8%, we also learn that the poker playing-head of Greenlight is not a fan of Elon Musk; Einhorn also lashes out at the Fed although since Greenlight's antipathy toward the Federal Reserve has been well known for years, this is not exactly new.

Einhorn starts off by quoting from Dave Pell: “It’s pretty amazing that we live in an age when a CEO of two public companies can give a talk about colonizing Mars and shareholders don’t see that as a warning signal”, and added that "It’s not so amazing when one considers that those same complacent shareholders have been willing to look past years of over-promising and under-delivering from a promotional CEO. 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."

Something tells us TSLA is one of Einhorn's more prominent shorts. And speaking of shorts, in the next part of the letter Einhorn then lashes out at central bankers, in typical fashion:

In contrast, we have central bankers who are determined to see flashing lights that aren’t there. We are more than seven years into an economic recovery, yet central bankers behave as if we’re still in crisis. Not only are experimental emergency policies being maintained, they are being expanded despite little evidence that they are needed or helpful. The newest manifestation comes from Japan, where the central bank has committed to monetize the entire government bond market if needed to keep the ten-year rate at zero. Leading economists are currently destigmatizing the idea of fiscal policy stimulus financed by direct money printing, so that goes into the coming attractions queue.

Einhorn next engages in everyone's favorite exercise: just what "data" is the "data-dependent" Fed reacting to:

With U.S. unemployment at 5% and the core CPI rising 2.2% over the last year, it is difficult for the “data dependent” Fed to further rationalize emergency rates based on its official dual mandate. It appears that the real criteria for raising rates are:

  • Market forecasters fully expect a rate increase.
  • The most recent move in the S&P 500 was positive.
  • There is no trouble in foreign economies or financial markets.
  • There are no potentially destabilizing geopolitical events, including foreign elections.
  • The Cubs win the World Series.


At the most recent Federal Reserve meeting, Chairwoman Janet Yellen indicated that the case for raising rates had strengthened, and three governors voted to do so, yet the Fed decided to wait.

Einhorn's conclusion is spot on:

"Clearly there is little appetite for normalizing policy, even under normal conditions. Instead of defending the continued easy money policy, Chairwoman Yellen recharacterized it as only “modestly accommodative.” She also denied that the U.S. election drove the decision, which makes her politically neutral enough to moderate a presidential debate."

In light of today's FBI developments, and should Hillary lose the election, perhaps the next Fed move will be a rate cut should the market proceed to tumble having priced in a Clinton election.

His full letter is below.

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Jim Sampson's picture


SteveNYC's picture

I understand the emotion here. However, if a guy can spin a story about colonizing Mars, landing rockets on a moving frisbee in the Paciifc Ocean, and other, related tripe - and people buy it - I say screw it. Watch and be entertained, just don't put your money there. Steer well clear....but have a laugh.

NotApplicable's picture

I'm thinking people are "buying it" due to Musk's success at being a welfare queen.

Jim Sampson's picture

My tax money goes to him whether I like it or not.

yippee kiyay's picture
yippee kiyay (not verified) Jim Sampson Oct 28, 2016 4:53 PM

He's an idiot.

Infocat's picture

Who knows, the research Tesla is doing may actually safe the world one day. http://www.truthjustice.net/economy/the-coming-breakdown-of-u-s-global-m...

yovatti's picture
yovatti (not verified) Infocat Oct 28, 2016 5:17 PM

Musk is a genius actually. He has accomplished great things (esp. re-usable boosters) at a fraction of the cost fo NASA's bungling.


But the Russian shills here al lhate him because he's going to destroy Putin's launch industry. Ha ha ha - suck on it Vlad.



N0TME's picture

We love Vlad, so deal with it.  Multipolar world, not Uniploar.

yippee kiyay's picture
yippee kiyay (not verified) N0TME Oct 28, 2016 9:33 PM

That's why THE LONG ARM of the USG is reaching out for him.

philipat's picture

Hey yippee kiyay (Soon to be banned and will then use the next new names letsit and lonnng) , previously:

Aristotle of Greece


You are a serial spammer and a serial pain in the ass. Might I politely suggest that you go fuck yourself? And get a life.

Your MO, always the same, is to post a provocative comment which SEEMS to be relevant but you have no interest in joining the discussion (and NEVER do) and your sole objective is to mislead readers into clicking on your falsified links to your BS site. That wastes everyones time is blatant SPAMMING.

Apologies to regular ZHers because I do understand these posts of mine can be irritating also, but I am donating my time to expose this shithead for the benefit of the ZH community. Please just skip over my easily recognisable posts when you see them.

StagStopa's picture

I have to agree there...


nailgunner44's picture

Elon Musk is totally manufactured by Intelligence and is nothing but a fake human front for fake projects. His entire bio is one long plug for privatization/deregulation and is chock full of red flags. Just another hired actor who reads from the neo-con or fascist cue-cards.

MRob's picture

Tesla cars are also awesome. To say they "underdeliver" is braindead stupid when their cars have been rated as the best cars in the world, as insanely safe (even with self drive, way less casualties per mile than other cars), incredible to drive, and just all round perfect in every way. 

Secondly, this "analysis" goes full retard when it says to stay clear of investing in companies that want to send people to Mars, as SpaceX is not publicly traded. So uhh, yeah steer clear of putting your money there!! Cos you cant anyway!!! But if I could, I would in an instant. Besides, Musk has always been clear his mission is to send people to Mars. Its not like this is some recent newsflash.

The only VALID criticisms of Musk are that he promises impossible timelines that his engineers cannot make, so projects are repeatedly pushed back. Also he is brutal with his staff. But hey, he's on a mission.

nailgunner44's picture

pure sycophantic drivel

jaxville's picture

  Compare a tesla to a BMW electric car and even the blind can see there is no real comparison.  Tesla is a novelty item compared to a BMW.  I suspect that is probably the case when compared to other electric cars from real car manufacturers. 

  They do like nice though.

MRob's picture

Sure the BMW electics are very good in their own ways, but are totally different cars and inferior to the Tesla in most practical ways. E.g. in driving terms the i8 looks amazing and they say it is mind blowing to drive, but it is a sporty hybrid supercar that costs almost twice as much as the Tesla S and only has two seats. The Model S has 4 + 2 seats, is fully electric, drives like a dream and has way more storage space in it. It has won loads of awards and recieved highest scores ever from some reviewers, and if you want "sedan supercar" then there are models that do 0-60 in 2.5s. The i8 does it in 4.2s. The BMW i3 is a cheaper cutesy town electric car, again not comparible.

Also dont forget that Tesla are a new company, that have had to build from the ground up. BMW have the benefit of massive experience in building great cars, and almost unlimited resources they can throw at new projects. No, what Tesla have succeeded in doing is incredible, and totally unheard of in the auto scene.

StagStopa's picture

Yes. And to knee grows, hrc, mic, "lost" pentagon billions. You can't starve a baby and expect it to grow. How about GM, and chrysler (a joke car if there ever was one..)


J J Pettigrew's picture

Will Musk get all the subsidies and perks under Trump?

Ineresting election play....short Tesla big if Trump wins...

Vageling's picture

Good point. He talks much. However how does he think it will pull off? Sending an machine is not the same as an human.Even ISS don't go beyond the "safe" zone. Uses Earths minimal protection. Why do people invest?  Dunno. He proved no shit. ESA lost their mars toy, well their second. Suicide much?

RyeWhiskey's picture

Elon is just a face. The spin is done by Cali Tech Cartel. A very real criminal enterprise.

Rearden-Steel's picture

Granted I am too lazy to really dig into Tesla's financials, I am really curious how presales and anticipated COGS are factored into current results. Total guess, but I would bet its some very aggressive accounting / turd shining considering how much they rely on those presales for cash flow presently.

Kristian's picture

I would rather shoot him to Mars.

StagStopa's picture

No, fuck you, you faggot ass faggot. None of you haters have a clue. All you can do is follow the rest of the jaded cunts here. 


N0TME's picture

Jeez, recently come off your meds???

Paul E. Math's picture

Not following any jaded cunts here.  I've been a jaded cunt just as long as Elon Mustk has been a twitchy bullshit-picasso.  Which is a long time.

1777's picture

Off topic,

Here, here!!!

The Clinton campaign blamed the Russians, they blamed right wing conspiracies, they blamed everyone under the sun and the ESTABLISHMENT did NOTHING!

Well, now the crooks are looking SO BAD at home AND abroad they are going to have to do something.

They are finally (maybe) about to lay the blame where it has belonged ALL ALONG! At the feet of the Klinton Krime family and its enablers in the establishment!!


Antifaschistische's picture

But....what if Elon gives $10 million to a certain "Foundation" with connections to a "Presidential Candidate" that pays off 20 to 1 in a .gov "bailout" or massive Green Energy "subsidy".    Aren't we finally proving that's the way the game really works?

Arnold's picture

Don't let the ink dry on the check before you cash it.

Snaffew's picture

Musk has his sights quite a bit higher than a 20:1 payout of $2billion....that boy is looking for a $20 billion green energy subsiidised bailout.

Kefeer's picture

The Ethanol scam was before the Muskie scam and Elon is just trying to win the "green" scam; it takes, conservatively speaking, 2.5 gallons of fossil fuel for every gallon of Ethanol!!


The by-product is corn syrup converted into High fructose corn-syrup, which connects the pharmaceutical (i.e. billions on diabetes) and higher feed and cattle prices & food prices all-around; all protein sources have out inflated all the others.  This is how "the love of money is the root of all kinds of evil" & why "it is easier for a camel to go through the eye of a needle than a rich person to enter heaven".!!

jesus_loves_you's picture

Elon Musk seems to be cut from the same fruit-loop fabric that Mark Zuckerfuckerjoo-berg was cut from. I say put Musk, Bezos, and Zuckerfuckerjoo-berg on one of those rocketships aimed at deep space and send them off to have a cosmic circle jerk on their way to the outer limits.

StagStopa's picture

Hey faggot, why don't you jerk off to the weak jew pansy ass Jesus that you use as a name. You and Jesus and the rest of you faggot Christians had your chance. Now lord Lucifer will reveal Himself and show all you pussies some real Power.


StagStopa's picture

Bet you got one of those flags on your pickup truck. Bet you suck cock real pretty with your toothless mouth..


Hohum's picture

Take your meds.  Now.

jaxville's picture

Everyone pay attention....

English herbsman's picture

Elon Musk. Full of shit. 


Deep state have been to mars and futher, he knows it to. Deep state has technology that can change the world for the better and supresses it for themselves. He knows that to. 


Just a buisness man disguised as an inventor. 

Hohum's picture

"Jerry, they've got a cure for cancer." Kramer

PTR's picture

Thank you.


If he doesn't know that, homie has more strings than a fiddle tied to him.


As far as the deep state and space goes, I'll drop names and let everyone do their digging and come to their own conclusions (as they should anyway): Corey Goode, Michael Sala, David Wilcock. 


There are probably others, but those three seem to be making the biggest waves as of recent.

Allen_H's picture

Everything about Musk is a fraud, from his name, personal history, achievements, etc. It is all bullshit!

He is just an actor.

Hohum's picture

Elon Musk for Fed chair!  It will save space on this website.

Shrike99's picture

I always enjoy hearing what Einhorn has to say. 

Dude is trying to pilot his skiff of fundamentals-driven, value investing pricinples through the current insane Cat 5 momo hurricane.

I root for the guy.

SHRAGS's picture

 "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."

Controlling the narrative, ie spinning a yarn, "bullshitting" is now the most highly skilled & revered artform needed to thrive and survive in the modern world.  

Harry Frankfort "On Bullshit"


On Bullshit part 1 https://youtu.be/W1RO93OS0Sk

On Bullsit part 2 https://youtu.be/hp_c8-CfZtg

StagStopa's picture

No shit, sherlock. Such has it always been. He also produces a product,  created manufacturing jobs in the usa.

What have you done?


SHRAGS's picture

He also produces a product,  created manufacturing jobs in the usa.

Your right, I haven't taken a dime of government subsidies to create a job.  On the other hand, Musk has taken $4.9 billion is subsidies. 

Los Angeles entrepreneur Elon Musk has built a multibillion-dollar fortune running companies that make electric cars, sell solar panels and launch rockets into space....

And he's built those companies with the help of billions in government subsidies.

Tesla Motors Inc., SolarCity Corp. and Space Exploration Technologies Corp., known as SpaceX, together have benefited from an estimated $4.9 billion in government support, according to data compiled by The Times. The figure underscores a common theme running through his emerging empire: a public-private financing model underpinning long-shot start-ups.

"He definitely goes where there is government money," said Dan Dolev, an analyst at Jefferies Equity Research. "That's a great strategy, but the government will cut you off one day."

The figure compiled by The Times comprises a variety of government incentives, including grants, tax breaks, factory construction, discounted loans and environmental credits that Tesla can sell. It also includes tax credits and rebates to buyers of solar panels and electric cars.



kuwa mzuri's picture

SpaceSex rocket launch, landing, and docking vids are not near as good as the animation for "The Thunderbirds" in the 60s.  All of the oligarchs' faked space programs could inspire a How to Succeed in Business Without Really Flying.  Is Robert Morse still alive?

buzzsaw99's picture

musk's ideas are all death traps, that's why owebomber gives him so much of our money.

i like the way you talk. [/sling blade]

StagStopa's picture

Fuck David einhorn. What's he produced? Fucking hot air. Elon is a genius, a leader, a visionary. Not perfect, but he's trying. Not enriching himself.