https://www.axios.com/hedge-funder-says-investors-hypnotized-by-elon-musk-1513302033-7bb2c081-d0a5-4bd7-ab95-cc2a97a63f70.html
Dan Primack May 3, 2017
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Hedge funder says investors "hypnotized" by Elon Musk
Hedge fund manager David Einhorn is getting burned by the ever-rising share price of Tesla Motors, which now has a market cap larger than that of Ford. But while Einhorn doesn't understand why investors remain "hypnotized" by Tesla CEO Elon Musk, he remains confident in his fund's short position. From a Wednesday conference call:
"The enthusiasm for Tesla and other bubble-basket stocks is reminiscent of the March 2000 dotcom bubble. As was the case then, the bulls rejected conventional valuation methods for a handful of stocks that seemingly could only go up. While we don't know exactly when the bubble will pop, it eventually will."
Einhorn's argument: Tesla won't be able to mass market its Model 3 "at volumes and margins that justify the current valuation."
Musk's reply: None yet, but he's no shrinking violet when it comes to Tesla doubters.