- Musk replied to Twitter user @TeslaTested who claimed Jim Chanos covered his short position after having lost $175 million.
- Jim Chanos has since dispelled the rumors.
- Questions surrounding Tesla’s accounting practices remain unanswered.
CEOs of large cap companies don’t usually spend their time attacking short sellers. They know if their business performs well, it will reflect in the stock price and short sellers will have no option but to cover their positions for a loss. As a result, engaging in a battle with the shorts is considered a waste of time. Tesla CEO Elon Musk, on the other hand, doesn’t fit into these conventional-CEO norms.
Musk has a long history of taunting—or even intimidating—Tesla shorts. His infamous antics include taunting David Einhorn, threatening an anonymous critic with legal action, slapping a short-seller with a restraining order, accusing BlackRock of helping shorts and so on.
In typical Elon Musk fashion, the billionaire tech mogul yet again took to Twitter to taunt famed Tesla short seller Jim Chanos.
Musk mistakenly declares victory over Jim Chanos. | Source: Twitter
In the tweet, Musk was replying to Twitter user @TeslaTested who claimed Jim Chanos covered his short position after having lost $175 million. To be fair to Musk, he probably didn’t know that the tweets—which have since been deleted—were factually incorrect.
Chanos Is Still Short Tesla
On a webcast with Hedgeye, Chanos—who’s renowned for shorting Enron—dispelled the rumors and said:
Tesla is and remains our biggest and the best short positions.
Chanos also reaffirmed his price target of zero and cited insider selling coupled with an executive exodus as reasons behind his conviction. He also brought into question Tesla’s accounting practices and cast doubt on the company’s surprise third-quarter profit.
Chanos’ views on Tesla’s accounting were consistent with Greenlight Capital’s David Einhorn, who has also been a Tesla short for a long time….