Yeah me too. This the most laughably poor investment thesis I have ever heard. In essence he is saying that it is better to focus on a good return on capital than it is to focus on making a better competitive product. It’s an insane conclusion.
According to Forbes he's left billionaire status and now is only worth just a little over 600 Million. He's no better an investor than Bruce Berkowitz lol.
Karl Dimples What year? He current net worth is between 22 to 24 Billion according to Bloomberg, Google and Business insider. If Tesla reaches a certain size his payout could be 50billion and the satellite internet could also be billions.....
this guy never understood the power of innovation and technology and is paying for it dearly now. You don't analyze a growth company purely on profitability.
@Nathan Anderson Geez, really. If you actually sat down and educated yourself a little on the subject you'd realize that yes Tesla is indeed a growth company. It's THE growth company. 2019 hasnt been a year where their main focus has been on production upscaling. They've trimmed down costs and made their production more efficient. They've now proved that they can actually make a profit on their cheaper versions of the model 3 hence why the stock has gone up. Dont know if you know this, but they just started production on their brand new Shanghai Gigafactory which will soon be able to produce an additional 3.000 cars per week. As of right now they're producing cars at a rate of 7.000 per week. Thats a growth rate of almost 50% friend, so what on earth are you talking about. Btw Musk predicted 360.000-400.000 cars delivered in 2019. They're probably gonna land on 360.000. Last year they produced 245.000. Can you see the growth now or do you need to go back to kindergarden and learn how to count?
LOL just look at Tesla now another record deliverys quarter and as for Einhorn... He made millions shorting Tesla. But first he had to start with billions. -$750 ish million shorting Tesla. If you want to make money just do the opposite of what he says.
@@123ase-i4x No it is finally being understood that Tesla is set to bankrupt all the ICE manufacturers. With full self driving and robotaxi's it will probably bankrupt the rest of the automakers as well. In less than 10 years we will be owning subscriptions to an app that has cars meet us when we want and take us to where we want. This will be 10X cheaper than a new car and 4x cheaper than even owning, insuring and maintaining a currantly owned vehicle.
His year to date is -3%. A wet shovel could pick a random stock and do 10%PA. When the market as a whole is a constant rise, you have to be pretty stupid to do -3% with a lot of effort. If he can't understand basic things like growth and consumer enthusiasm, then he's a mug. I'm quite surprised that a man so devoted to the stock market only understands book value. I mean, how on earth is it possible to overlook TSLA's 20 fold stock growth in the last 6 years and +85% in the last 12 months. How do you short that... with years of idiot shorters taking endless savage beating. How.
Tesla was profitible this quarter.... ??? "some fancy science experiments" Nice way to talk of the best selling luxory cars in the world, tesla model s and x... They are sellinf more luxory limosines than mercedes! Where does your "experts" get their data from?
When presented with facts, the Tesla shorts go straight into fantasyland. The fact is that the stock is currently trading at $342US and China and Europe can't get enough. Where do you think the stock will go n the near future? Nowhere but up.
Einhorn may have a vested interest in GM as his company owns shares, but it's also true that Elon Musk himself has said that Tesla's stock price is currently very generous and higher than "we probably deserve". Elon has also said that Tesla hasn't shown a real profit and doesn't expect that to change until they start selling a lot of Model 3's. I think it's also fair when he says GM is focused more on profitability and Tesla more on advancing technology. I think to this degree Einhorn is being reasonable in his assessment of Tesla.
Well, there's a reason why Tesla's stock price is currently very generous and higher than "we probably deserve" even though Tesla can't reasonably be expected to show a profit for years yet, while GM's is in the dumps. Tesla is poised to take market share from GM and the other legacy car makers and GM seems willing to just sit back and let it happen. Einhorn labels himself a fool for shorting Tesla. Profitability is not all it's cracked up to be.
@@adamc2320 Funny how my Tesla owning friends can't shut up about their respective autopilots while my gas guzzling friends don't mention their autonomous features at all.
Problem is GM isn't making more all electric cars so there. They should but they're scared in losing money. Best example is Tesla, just look at them by 2018 they'll make money that year and beyond.
You don't have any optimism about Tesla's profitability? Well, OK: forward P/E for TSLA for 2021 is less than 90. Wait until 2030 when Tesla manufactures 20 million cars, 2TWh capacity of batteries (Megapack and Powerwall), when launches neural network training service (Dojo as a service) and a massive robo-taxi fleet!!! 😉
Host: "There seems to be many investors who are willing to give Elon Musk more money for science experiments or whatever he's doing". Wow. Just wow. How condescending is that? Not to mention clueless. Is it electric cars that he's calling science experiments? The technology that everybody in the industry agrees is the future of the automobile? Really?
His GM idea is anything but clever. Who is GM suppose to cater to? The dividend or growth equity holders? GM doesn't need to restructure its entire capital structure to help out a hedge fund guy who's have a lousy few years.
Only one year passed and Tesla made over 300 million profit ;-) (but in his opinion it's not gettin better ..? LOL ... we will see again if he is (not) right ;-)
David Einhorn about Elon Musk as businessman innovator 10:15 "He's yet to actually take any money and turn it into a profitable business." Elon mush had many profitable businesses:Zip2, PayPal, SolarCity, SpaceX and Tesla Motors (now named Tesla was proffidable for short time, go back and look it up). This shows David Einhorn has no idea about who is talking about, the job he has is also thanks to Elon, as Elon is the father of digital banking, he should be thankful.
I think what David is proposing is very similar to an "estate freeze" although not exactly. By having a "dividend class" (preferred shares) and a "growth class" (new common shares) the dividend class would attract new investors (presumably income oriented investors) and the growth class would attract (presumably more risk affined investors) hence his reference to the "chocolate vanilla swirl". I think he believes that they (the shareholders) can make the company significantly more valuable (in terms of stock price) without changing GM's fundamental business model but rather their capital structure.
Nick Cup I believe this doesn't help the company grow real earnings this is a ploy to inflate the stock ,obviously just my opinion , it's clever but lacks any substance.
You make a good argument Justin, I think this is one of those ethical dilemmas a right vs. right...I'll ask you this - Don't the shareholders deserve their wealth to be maximized? Einhorn is arguing that the company is being too conservative with regards to their capital structure (ex; sitting on a lot of dormant cash) Hording cash does not help the company grow real earnings either - By extracting cash out of the corp via dividends or a mix of what Einhorn is proposing will presumably raise the stock price significantly thus create more wealth for the shareholders.
Nick Cup kudos arguing your point. you are right in that shareholder value must be paramount. the issue with this idea is that there are alot of passive shareholders that are not interested in splitting the stock into a dividend and non dividend share he could suggest preferred shares but this exists in their structure. gm is a valuable enterprise that is not impervious to cyclical effects there cash stockpile reflects just that. cheers.
the preferred shares did exist at one time they could reintroduce those and maintain a huge pile of cash and simultaneously raise more money to do even more investments in automobile tech
This clip was published June 2nd 2017. GM was @34,5 and TSLA@340 do today if you listen to Einhorn and gave $20B to GM that would cost you 5,9B. If you did the same thing with Tesla than congratulations on you 70,6B gains as of 2020-07-12
Sickening formula. Wall Street can't stand any company that doesn't blow all it's cash and take on a ton of debt. Lines the pockets of the traders at the expense of the long term shareholders. GM is on the right financial course, with great product, and the taxpayers appreciate it.
This guy wants GM to innovate it's financial structure instead of innovating it's automotive technology. What a nutcase! I think he's going to be on welfare soon.
+Michael Snyder, Do you truly believe that GM shouldn't invest it's cash in developing new innovative technologies? Do you truly believe that GM engineers are incapable of developing new innovative technologies? I'm certain the engineers are capable. But it seems that management doesn't agree. So, do you agree with management, or do you agree with me? With $20 billion, they could start their own Tesla. But, they should have started 20 years ago (before the bailout). Back when they had the EV1 instead of taking them all back and crushing them, they should have continued development. They should have invested in new battery technology. Right now they should own all the lithium polymer battery technology and patents. They don't because they were short sighted then. And they continue to be short sighted now. And this David Einhorn idiot believes they should innovate by figuring out new innovative ways to give all their extra cash to their shareholders instead of investing it in future technologies that would likely lead to huge future profits.
+Michael Snyder, You're right about his idea about splitting the stocks into two and issuing them to all the current investors, but listen to the video from 9:09 on.
Einhorn is zero. Not saying he is not smart . But he was only right once or twice. That's why he has a name. But his track record speaks for himself.....
Owns gm and shorts Tesla. Like doubling down on blockbuster and shorting Netflix. Or buying bn and shorting Amazon. Both cases the incumbents were printing money while disrupters bled cash
till the convo came to tesla, I had huge respect for the guy and thought he knew what he was talking about.... Tesla has already guaranteed a future monopoly on the American car market by investing in charging stations all over the country and completing the gigafactory. On the other hand, Spacex has already locked in a launch deal with NASA for the 10 upcoming years worth 11bn... All the other companies he has launched and sold to date, zip2 and x.com has netted him 22 and 180 mil respectively.... Only the other companies that he has invested in namely , Neuralink and Open AI run actual science experiments...
Who knows what a 20 bil investment into Tesla or GM would turn out within the next five years - not even greenlight knows that for certain. All I could observe is when he was talking (ridiculing) about Tesla his eyes told me that he was not really honest about his statement... Money corrupts most people!!!
The market is basically saying nobody wants to own GM. But that may change to the benefit of Einhorn. But you can't blame a guy for trying to be an activist with his own book.
Lol was thinking the same thing but I think people's argument is more long term vs short term however 30% up is a great increase over that time period. However if Tesla does start performing well people are banking on a Apple type growth which would bring incredible returns. The question is how realistic is it and are you looking for long term sustainability with average to decent growth or a high return but in the short term..
ⵔⵓⴽⴰⵜⴽⴰⵜ I think it's the other way round. Tesla is in a position to be the future and GM is heading towards as government bailout. More welfare for the rich.
Going long on GM and short on Tesla is Saturday Night Live skit material. These two are three piece suit clowns stuck in last centuries stock market strategies.
I have to admit i hope so too. Being greedy with your money is one thing, hopefully hes only losing the money of those who can afford to lose it. Makes him only slightly more ethical than vanguard
Elon Musk is likely a "expensive toy" guy. But, Elon does know what he is doing. I think Elon is under stress, but I think he is keeping the profit motive in mind for the future. Einhorn is reasonable. Elon may be will to let the company "go to hell" while he makes his technical goals.
This guy's too smart for his own good. Why would anyone buy GM for its growth potential? Buy Tesla for growth! GM is going to continue to shrink. They're practically a sitting duck. The only reason to buy GM is for the dividend. So's Ford. That's why both companies stock prices are so low. If Mary Barra wants to increase the value of her stock, she should make a credible investment in EV infrastructure so that GM can compete head-to-head with Tesla. GM has no gigafactory of its own, and no fast charging network of its own. Until that situation changes, they're not ready to play at a competitive level in the EV market. They're still in the minor leagues with the Bolt EV compliance car cobbled together from EV parts they bought from L G Chem. Even if it were a raging success, which it's not, they still wouldn't be able to satisfy demand because they are constrained by lack of in-house battery production. And Tesla will continue to eat its lunch as long as they don't have a fast charging infrastructure, no matter how good the car itself is. The car market has made it's choice known. 400k or more people have put down money for a place in line to buy a Tesla Model 3. That's unheard of. That's also 400k or more car customers who will no longer be buying cars from the likes of GM and Ford. Sitting ducks, they are. Tesla isn't going to stop at 400k.
Those deposits are refundable and Tesla is dead last in autonomous driving technology while GM and Waymo are leading this race. I too was a little overly enthusiastic about Tesla, but after looking at the numbers and considering their losses year after year and failed promises with regards to produced quanities, it's very evident that Tesla is extremely overvalued.
daves horizon is so limited that he thinks in icecream stands, thats why he does not understand tesla or space x, he just cant find the strawberry icecream there. maybe dave has just alzheimers?
"If you want a guy to do really cool buzz-wordy kind of things" or return the value to their customers and not in dividends to investers. How many car companies have a robust charging network? Only tesla. Wall street ethos is forget about all stakeholders excepts the financial "investor" class. This ethos is the cause of our inefficient medical system.
By all means, don't invest in Buzz wordy gadgety future things, who needs to improve quality of life. Let's just keep doing what we are doing to extinction.
Sorry, David. You just have to invest more on a hairpiece. We Tesla [Musk] fan boys love looking back at you, Chanos and Speigel 'splainin, why you are in short position. After today I think it is much more like a 'short hairs' position--HAHAHA. It's always fun to watch people who bet on failure, fail...
It's not so much about the price of the stock although that's what all the negative coverage is about. It's that Mark Spiegel and Jim chanos and David Einhorn go on television 2 try to bring down an American company employing American workers so that they can make a profit when the stock price goes down. Just the thought of that being someone's profession is kind of sad.
Cory Pride yeah agreed. But I think Elon musk has just got too much on his plate, and the stress is getting to him. I wonder how well you can run a company, when you’re also CEO of several others. Let’s see how this plays out. I’m neither long or short.
There's no helping someone like Einhorn. If you can't see the value in Tesla at this point you never will. These people will still be lamenting how Tesla shouldn't be where it is in 10 years when the stock is $3000 a share
How so ? Musk smells a lot like Jeffrey Skilling. Taking on huge sums of capital from investors to fund these fantasyland projects that never materialize, let alone monetize.
You both have points here, yes Tesla has taken a lot of money in to develop product however they actually have market success with their products and now they have 3 automobiles that they sell. The concern is with how much money they have taken on will the be profitable enough in the future, if they aren't then things will crash. It is a huge concern and I wish Elon Musk success as he has already caused dramatic changes in the automotive sector.
What do you think will happen to Tesla if the economy takes a downturn though when they're so highly levered?? Also I really love Tesla but will also take them a long time to become profitable. Also I think you're missing the fact that once the large car companies actually start mass producing great products, what will keep the stock propped up any longer?
Tesla has never had a 'market success'. They've lost money on ALL their previous car models. The problem is that there is little margin in an electric car because of high battery cost combined with the fact that Tesla is THE most inefficient car manufacturer in the world (look at ratio of employees to car output). To the original poster, how much profit would Tesla have to earn to justify a $3000 stock price? lol It seems this stock is the bitcoin of the Stockmarket, full of clueless investment neophytes who think they are investing geniuses. Company is going to be bust in a few years time.
9:13 to 10:15 This secured my conviction to go all-in on TSLA. Thank you David Einhorn!
Yeah me too. This the most laughably poor investment thesis I have ever heard. In essence he is saying that it is better to focus on a good return on capital than it is to focus on making a better competitive product. It’s an insane conclusion.
congrats bro what did you snag it at?
2019 Greenlight is -34% and inversors are fleeing!
According to Forbes he's left billionaire status and now is only worth just a little over 600 Million. He's no better an investor than Bruce Berkowitz lol.
Karl Dimples What year? He current net worth is between 22 to 24 Billion according to Bloomberg, Google and Business insider. If Tesla reaches a certain size his payout could be 50billion and the satellite internet could also be billions.....
@@MJ-zo5gb I'm referring to David Einhorn. My bad.. I should've been more clear
Karl Dimples oops. Got it!
yup
Ouch this didn’t age well for Einhorn 🤣
he looks stressed af too
9:15 TESLA PART
Thanks
this guy never understood the power of innovation and technology and is paying for it dearly now. You don't analyze a growth company purely on profitability.
@Nathan Anderson Geez, really. If you actually sat down and educated yourself a little on the subject you'd realize that yes Tesla is indeed a growth company. It's THE growth company. 2019 hasnt been a year where their main focus has been on production upscaling. They've trimmed down costs and made their production more efficient. They've now proved that they can actually make a profit on their cheaper versions of the model 3 hence why the stock has gone up. Dont know if you know this, but they just started production on their brand new Shanghai Gigafactory which will soon be able to produce an additional 3.000 cars per week. As of right now they're producing cars at a rate of 7.000 per week. Thats a growth rate of almost 50% friend, so what on earth are you talking about. Btw Musk predicted 360.000-400.000 cars delivered in 2019. They're probably gonna land on 360.000. Last year they produced 245.000. Can you see the growth now or do you need to go back to kindergarden and learn how to count?
@Al Wa 王八 王八蛋 father Eeh no.
LOL just look at Tesla now another record deliverys quarter and as for Einhorn...
He made millions shorting Tesla. But first he had to start with billions. -$750 ish million shorting Tesla.
If you want to make money just do the opposite of what he says.
the only thing pumping tesla is the cultist fanatic fan base that keeps buying it ( way past its intrinsic value )
@@123ase-i4x No it is finally being understood that Tesla is set to bankrupt all the ICE manufacturers. With full self driving and robotaxi's it will probably bankrupt the rest of the automakers as well.
In less than 10 years we will be owning subscriptions to an app that has cars meet us when we want and take us to where we want. This will be 10X cheaper than a new car and 4x cheaper than even owning, insuring and maintaining a currantly owned vehicle.
David and his ice cream stands.
How to become a millionaire? Be a billionaire who invested heavily while following David Einhorn’s advice.
How does a company that was bankrupt and wiped out its stock holders now suddenly has more than 20B in cash?
Their 2010 revinue was 135 billion. Save 3 billion for 7 years and you get 21 billion.
Einhorn has averaged annualised returns of 16.5% over the last 20 years. He's no mug. And I say that as a Tesla stockholder.
localfox1000 wow, way to tell how it is. Einhorn is the real deal lol
and after all costs, I suppose. Einhorn is a great investor and his words have weight.
His year to date is -3%. A wet shovel could pick a random stock and do 10%PA. When the market as a whole is a constant rise, you have to be pretty stupid to do -3% with a lot of effort.
If he can't understand basic things like growth and consumer enthusiasm, then he's a mug. I'm quite surprised that a man so devoted to the stock market only understands book value. I mean, how on earth is it possible to overlook TSLA's 20 fold stock growth in the last 6 years and +85% in the last 12 months. How do you short that... with years of idiot shorters taking endless savage beating. How.
I made a decision about a week ago to go all in on TSLA as it looked like a low before a 2 year rocket rise with Model 3. It's up 10% since.
he is as self made billionaire and you are not. Who's the stupid?
Tesla is not a science experiment...the cars rock...by industry peer review.
thank you !! David for covering your shorts!!
hey dave how is your TESLA short going?
looks like very well.
@@Ipunchholes what were you saying?
He is wearing a wig. He has not shaved. He is a highly valued analyst - yup.
He should invest in a better wig company :D
Awful wig.
Tesla was profitible this quarter.... ??? "some fancy science experiments" Nice way to talk of the best selling luxory cars in the world, tesla model s and x... They are sellinf more luxory limosines than mercedes! Where does your "experts" get their data from?
When presented with facts, the Tesla shorts go straight into fantasyland. The fact is that the stock is currently trading at $342US and China and Europe can't get enough. Where do you think the stock will go n the near future? Nowhere but up.
Tesla price is over 1000 usd. His research was wrong it looks like...
Hasta la vista, David Einhorn. Don't let the Tesla door hit your butt on your way out!
He's so sleezy. I'm glad all his investors are leaving
WTF is with his hair? It that a wig or what?
Idk if sleazy is the right word lol but I get what you're saying.
try to find a gm car in europe...
Selling Apple was his worst move ever. He does need a new rug on his head. That’s clearly a hair system.
Einhorn may have a vested interest in GM as his company owns shares, but it's also true that Elon Musk himself has said that Tesla's stock price is currently very generous and higher than "we probably deserve". Elon has also said that Tesla hasn't shown a real profit and doesn't expect that to change until they start selling a lot of Model 3's. I think it's also fair when he says GM is focused more on profitability and Tesla more on advancing technology. I think to this degree Einhorn is being reasonable in his assessment of Tesla.
Well, there's a reason why Tesla's stock price is currently very generous and higher than "we probably deserve" even though Tesla can't reasonably be expected to show a profit for years yet, while GM's is in the dumps. Tesla is poised to take market share from GM and the other legacy car makers and GM seems willing to just sit back and let it happen. Einhorn labels himself a fool for shorting Tesla. Profitability is not all it's cracked up to be.
Michael Barnes well put
Lets also not forget that Tesla is dead last in autonomous driving technology, while GM and Waymo are leading this race.
@@adamc2320 Funny how my Tesla owning friends can't shut up about their respective autopilots while my gas guzzling friends don't mention their autonomous features at all.
Problem is GM isn't making more all electric cars so there. They should but they're scared in losing money. Best example is Tesla, just look at them by 2018 they'll make money that year and beyond.
Robert Blackford yep. still not making money, and never will. The balance sheet gets worse every quarter! Lots of bonds maturing soon too.. 📉
Actually, you're 100% correct. Robert Blackford and Lewis Edwards eat your heart out. Tesla posts a nice 3rd 1/4 profit in 2018. Nice call!
You don't have any optimism about Tesla's profitability?
Well, OK: forward P/E for TSLA for 2021 is less than 90.
Wait until 2030 when Tesla manufactures 20 million cars, 2TWh capacity of batteries (Megapack and Powerwall), when launches neural network training service (Dojo as a service) and a massive robo-taxi fleet!!! 😉
Dont mess with Tesla lol
Host: "There seems to be many investors who are willing to give Elon Musk more money for science experiments or whatever he's doing". Wow. Just wow. How condescending is that? Not to mention clueless. Is it electric cars that he's calling science experiments? The technology that everybody in the industry agrees is the future of the automobile? Really?
My question is, what did he do with all those short shorts treelon musk sent him?
He smells it every night and uses it to wipe his tears.
What is on his head!?
cycosteve2006 Probably fungus. It grows on dead things.
GM flammable Bolts - don't park them near a building, other cars, or anything else that you don't want to burn.
this didn't age well
Lol how is gm going to generate a 20% return, with those stinking old factories? This guy is delusional.
His GM idea is anything but clever. Who is GM suppose to cater to? The dividend or growth equity holders? GM doesn't need to restructure its entire capital structure to help out a hedge fund guy who's have a lousy few years.
2 years later
Laughs at my 300% green soaring stock of tesla I sell my stock at 900
Com'on the gm plan was moronic.
GM will need a lot more cash than that to transition to EV production and survive, so it should keep hanging on to it.
Only one year passed and Tesla made over 300 million profit ;-) (but in his opinion it's not gettin better ..? LOL ... we will see again if he is (not) right ;-)
David Einhorn about Elon Musk as businessman innovator 10:15 "He's yet to actually take any money and turn it into a profitable business."
Elon mush had many profitable businesses:Zip2, PayPal, SolarCity, SpaceX and Tesla Motors (now named Tesla was proffidable for short time, go back and look it up).
This shows David Einhorn has no idea about who is talking about, the job he has is also thanks to Elon, as Elon is the father of digital banking, he should be thankful.
Lmfao he bleed 46% lastyear
GMs stock price has been around the same ballpark for the past five years.. Little to no capital appreciation.
Short term greedy capitalists.
Rick Deckard lmao. Socialists are such an odd bread of people.
how does his plan for the stock split into a dividend share and a non dividend share help the capital structure?
I think what David is proposing is very similar to an "estate freeze" although not exactly. By having a "dividend class" (preferred shares) and a "growth class" (new common shares) the dividend class would attract new investors (presumably income oriented investors) and the growth class would attract (presumably more risk affined investors) hence his reference to the "chocolate vanilla swirl". I think he believes that they (the shareholders) can make the company significantly more valuable (in terms of stock price) without changing GM's fundamental business model but rather their capital structure.
Nick Cup I believe this doesn't help the company grow real earnings this is a ploy to inflate the stock ,obviously just my opinion , it's clever but lacks any substance.
You make a good argument Justin, I think this is one of those ethical dilemmas a right vs. right...I'll ask you this - Don't the shareholders deserve their wealth to be maximized? Einhorn is arguing that the company is being too conservative with regards to their capital structure (ex; sitting on a lot of dormant cash) Hording cash does not help the company grow real earnings either - By extracting cash out of the corp via dividends or a mix of what Einhorn is proposing will presumably raise the stock price significantly thus create more wealth for the shareholders.
Nick Cup kudos arguing your point. you are right in that shareholder value must be paramount. the issue with this idea is that there are alot of passive shareholders that are not interested in splitting the stock into a dividend and non dividend share he could suggest preferred shares but this exists in their structure. gm is a valuable enterprise that is not impervious to cyclical effects there cash stockpile reflects just that. cheers.
the preferred shares did exist at one time they could reintroduce those and maintain a huge pile of cash and simultaneously raise more money to do even more investments in automobile tech
I hope Einhorn is enjoying his short shorts! LOL
I wonder..... What does Mary Barra think of David Einhorn?
9:13 Einhorn is someone I'd never put my money with.
Dual class stock is a creative and clever solution. I like this.
I guess we can scrap this thesis nowadays.
The fact he wants to call tesla a obvious tech company , a car manufacturer shows this dude is detached. Tech is it’s own Game
GM is not in a rainy day. GM is in a thunder storm and sinking fast
If Einhorn had a bonafide TSLA short position held until 2021, he would be bankrupt
I'm laughing at him now hahahahahahahahahahahahahahaha...........................
If his analogies are any indication of his intelligence he would be shorting Tesla...wait a minute he did!!!
How can anyone like gm?
its all about electronic cars not gasoline and diesel
It's byas all the way. You're not with Elon Musk you're not with Elon Musk. Elon kick their assess.!!!!!
All GM management team in the last 50 years or so should be fired, considering what they have achieved in all these years.
This clip was published June 2nd 2017. GM was @34,5 and TSLA@340 do today if you listen to Einhorn and gave $20B to GM that would cost you 5,9B. If you did the same thing with Tesla than congratulations on you 70,6B gains as of 2020-07-12
Waste of time listening to Bloomberg
this aged well! 😂
Not too keen on his idea either
He made 16% a year... for about 10 years... “never mistake a bull market as genius!” Warren Buffet
Sickening formula. Wall Street can't stand any company that doesn't blow all it's cash and take on a ton of debt. Lines the pockets of the traders at the expense of the long term shareholders. GM is on the right financial course, with great product, and the taxpayers appreciate it.
This guy wants GM to innovate it's financial structure instead of innovating it's automotive technology. What a nutcase! I think he's going to be on welfare soon.
never liked the company. their cars suck
+Michael Snyder, Do you truly believe that GM shouldn't invest it's cash in developing new innovative technologies? Do you truly believe that GM engineers are incapable of developing new innovative technologies?
I'm certain the engineers are capable. But it seems that management doesn't agree.
So, do you agree with management, or do you agree with me?
With $20 billion, they could start their own Tesla. But, they should have started 20 years ago (before the bailout).
Back when they had the EV1 instead of taking them all back and crushing them, they should have continued development. They should have invested in new battery technology. Right now they should own all the lithium polymer battery technology and patents.
They don't because they were short sighted then. And they continue to be short sighted now.
And this David Einhorn idiot believes they should innovate by figuring out new innovative ways to give all their extra cash to their shareholders instead of investing it in future technologies that would likely lead to huge future profits.
+Michael Snyder, You're right about his idea about splitting the stocks into two and issuing them to all the current investors, but listen to the video from 9:09 on.
Agreed 100%
Wouldn't trust him with my capital for sure
Einhorn is zero. Not saying he is not smart . But he was only right once or twice. That's why he has a name. But his track record speaks for himself.....
Owns gm and shorts Tesla. Like doubling down on blockbuster and shorting Netflix. Or buying bn and shorting Amazon. Both cases the incumbents were printing money while disrupters bled cash
till the convo came to tesla, I had huge respect for the guy and thought he knew what he was talking about.... Tesla has already guaranteed a future monopoly on the American car market by investing in charging stations all over the country and completing the gigafactory. On the other hand, Spacex has already locked in a launch deal with NASA for the 10 upcoming years worth 11bn... All the other companies he has launched and sold to date, zip2 and x.com has netted him 22 and 180 mil respectively.... Only the other companies that he has invested in namely , Neuralink and Open AI run actual science experiments...
Who knows what a 20 bil investment into Tesla or GM would turn out within the next five years - not even greenlight knows that for certain. All I could observe is when he was talking (ridiculing) about Tesla his eyes told me that he was not really honest about his statement... Money corrupts most people!!!
Don't forget the nervous twitches
Wonder how this guy invest now, I will do the opposite. Easy money without reading the market.
The market is basically saying nobody wants to own GM. But that may change to the benefit of Einhorn. But you can't blame a guy for trying to be an activist with his own book.
Greenlights been shitting the bed for the past 5 years
This guy thinks there are patterns. There is only history.
That’s a horrible hair transplant.
speaking of food....
The stock is at 43.5 now basically a 30% increase since July. So I guess he was right?
Lol was thinking the same thing but I think people's argument is more long term vs short term however 30% up is a great increase over that time period. However if Tesla does start performing well people are banking on a Apple type growth which would bring incredible returns. The question is how realistic is it and are you looking for long term sustainability with average to decent growth or a high return but in the short term..
Janos Neumann now down again . All time low for the year
Einhorn has no clue. Keep lossing
GM cars are like flip phones and nokia phones. would u invest in flip phones?
I would for the right price.
Price is everything.
Tesla will go bankrupt in a few years and GM is profitable today, I'd say that flip phones are better than no phones...
ⵔⵓⴽⴰⵜⴽⴰⵜ I think it's the other way round. Tesla is in a position to be the future and GM is heading towards as government bailout. More welfare for the rich.
@@jamesirwin7677
Both companies have thrived off government assistance.
@@Smullet90 Except Tesla paid off its debt to the US taxpayers, GM is not even close.
Going long on GM and short on Tesla is Saturday Night Live skit material. These two are three piece suit clowns stuck in last centuries stock market strategies.
It’s downright destruction of capital.
Emerald
Greenlight Capital 📞
Wow! This Einhorn guy is going to lose all his money soon!!
He must have lost a lot shorting Tesla.
This just in: einhorn is still a billionaire and Tesla is still a short
I have to admit i hope so too. Being greedy with your money is one thing, hopefully hes only losing the money of those who can afford to lose it. Makes him only slightly more ethical than vanguard
Toupee
A year and a half later 🐎💩
Feeling bad for the guy...
Elon Musk is likely a "expensive toy" guy. But, Elon does know what he is doing. I think Elon is under stress, but I think he is keeping the profit motive in mind for the future. Einhorn is reasonable. Elon may be will to let the company "go to hell" while he makes his technical goals.
IT’S THE SAME AS IT ALWAYS WAS!!!! YOU ARE JUST PISSED THAT YOU COULDN’T DO WHAT TESLA DID!!!!!!
This is a guy who refuses to use common sense.
einhorn is HARDLY legendary in his returns. i do better than him
Fairly poor attempt at a moustache.
Of course he helped with robbinhood
TESLA\\
100k-AUTOCAR*
This guy's too smart for his own good. Why would anyone buy GM for its growth potential? Buy Tesla for growth! GM is going to continue to shrink. They're practically a sitting duck. The only reason to buy GM is for the dividend. So's Ford. That's why both companies stock prices are so low. If Mary Barra wants to increase the value of her stock, she should make a credible investment in EV infrastructure so that GM can compete head-to-head with Tesla.
GM has no gigafactory of its own, and no fast charging network of its own. Until that situation changes, they're not ready to play at a competitive level in the EV market. They're still in the minor leagues with the Bolt EV compliance car cobbled together from EV parts they bought from L G Chem. Even if it were a raging success, which it's not, they still wouldn't be able to satisfy demand because they are constrained by lack of in-house battery production. And Tesla will continue to eat its lunch as long as they don't have a fast charging infrastructure, no matter how good the car itself is.
The car market has made it's choice known. 400k or more people have put down money for a place in line to buy a Tesla Model 3. That's unheard of. That's also 400k or more car customers who will no longer be buying cars from the likes of GM and Ford. Sitting ducks, they are. Tesla isn't going to stop at 400k.
Those deposits are refundable and Tesla is dead last in autonomous driving technology while GM and Waymo are leading this race. I too was a little overly enthusiastic about Tesla, but after looking at the numbers and considering their losses year after year and failed promises with regards to produced quanities, it's very evident that Tesla is extremely overvalued.
daves horizon is so limited that he thinks in icecream stands, thats why he does not understand tesla or space x, he just cant find the strawberry icecream there. maybe dave has just alzheimers?
soon gm need another bailout
This is the most foolish I have heard.
Is that a wig??
"If you want a guy to do really cool buzz-wordy kind of things" or return the value to their customers and not in dividends to investers. How many car companies have a robust charging network? Only tesla.
Wall street ethos is forget about all stakeholders excepts the financial "investor" class. This ethos is the cause of our inefficient medical system.
Hahaha
👼🏻🧚🏻👹🤠
By all means, don't invest in Buzz wordy gadgety future things, who needs to improve quality of life. Let's just keep doing what we are doing to extinction.
Sorry, David. You just have to invest more on a hairpiece. We Tesla [Musk] fan boys love looking back at you, Chanos and Speigel 'splainin, why you are in short position. After today I think it is much more like a 'short hairs' position--HAHAHA. It's always fun to watch people who bet on failure, fail...
Cory Pride stocks down 25% since this comment.. 😆
It's not so much about the price of the stock although that's what all the negative coverage is about. It's that Mark Spiegel and Jim chanos and David Einhorn go on television 2 try to bring down an American company employing American workers so that they can make a profit when the stock price goes down. Just the thought of that being someone's profession is kind of sad.
Cory Pride yeah agreed. But I think Elon musk has just got too much on his plate, and the stress is getting to him. I wonder how well you can run a company, when you’re also CEO of several others. Let’s see how this plays out. I’m neither long or short.
Hah at that wig ... look at that linear horizontal line. FAF!
There's no helping someone like Einhorn. If you can't see the value in Tesla at this point you never will. These people will still be lamenting how Tesla shouldn't be where it is in 10 years when the stock is $3000 a share
How so ? Musk smells a lot like Jeffrey Skilling. Taking on huge sums of capital from investors to fund these fantasyland projects that never materialize, let alone monetize.
Reminds me of the book "Extraordinary popular delusions and madness of the crowds".
You both have points here, yes Tesla has taken a lot of money in to develop product however they actually have market success with their products and now they have 3 automobiles that they sell. The concern is with how much money they have taken on will the be profitable enough in the future, if they aren't then things will crash. It is a huge concern and I wish Elon Musk success as he has already caused dramatic changes in the automotive sector.
What do you think will happen to Tesla if the economy takes a downturn though when they're so highly levered?? Also I really love Tesla but will also take them a long time to become profitable. Also I think you're missing the fact that once the large car companies actually start mass producing great products, what will keep the stock propped up any longer?
Tesla has never had a 'market success'. They've lost money on ALL their previous car models. The problem is that there is little margin in an electric car because of high battery cost combined with the fact that Tesla is THE most inefficient car manufacturer in the world (look at ratio of employees to car output).
To the original poster, how much profit would Tesla have to earn to justify a $3000 stock price? lol It seems this stock is the bitcoin of the Stockmarket, full of clueless investment neophytes who think they are investing geniuses. Company is going to be bust in a few years time.
fkin boss