Former Tesla Short-Seller Covered at Exactly the Wrong Time
*By Michael Teich*
Tesla's receipt of a SEC subpoena signals there could be "more fire under the hood at Tesla," said hedge fund founder and former Tesla short-seller George Schultze.
"It's troubling," he said Friday in an interview on Cheddar. "It's a bad sign for corporate governance and generally for the company."
Tesla ($TSLA) finds itself facing more regulatory pressure after the SEC subpoenaed the automaker on Friday. The government agency is probing whether Tesla delivered inaccurate projections for its Model 3 sedan in 2017.
The SEC and Tesla are already well-acquainted ー after CEO Elon Musk's $20 million fine for August tweets stating he planned to take the company private and had "funding secured." Musk was also forced to step down as Tesla's chairman. But Schultze said Tesla leadership could experience another shake-up.
"I would think there's going to be some more turmoil in the board and some changes for corporate governance."
Schultze's firm flipped on its bearish stance as a short-seller, believing that Tesla was on its way to becoming a private company. Now Schultze Asset Management is sitting on the sidelines.
"We had a short position. We covered it, unfortunately, on the day he said he that he had funding secured because we believed he was telling the truth, but it turns out that was all a big fraud."
For full interview [click here](https://cheddar.com/videos/sec-subpoena-to-tesla-is-a-troubling-sign-says-hedge-fund-founder).
The average rate on a 30-year mortgage fell 0.06% last week. Although the rate is much higher than it was two years ago, the decline could relieve buyers already dealing with low inventory and high prices.
As millions of Americans are set to retire, John Carter, President & COO of Nationwide Financial, shares what to expect and how consumers of all ages can better prepare for their golden years.
The heated hearing began with recorded testimony from kids and parents talking about being exploited on social media. Throughout the hours-long event, parents who lost children to suicide silently held up pictures of their dead kids.
Adtalem CEO Steve Beard addresses a report from Safkhet Capital taking the short position on the for-profit education giant, plus why he believes there should be financial recourse for student loan borrowers misled by their institutions.
CEO of Americares Christine Squires shares how the organization is helping provide medical assistance in a time of increasing instability, war, and climate-related disaster.
Doug Clinton, Deepwater Asset Management managing partner, shares tips for investors looking to take advantage of the massive boom in artificial intelligence beyond Microsoft and Nvidia.
Jason Moser, analyst and adviser at the Motley Fool, shares thoughts on recent tech earnings, including what’s behind Google’s share price drop and why A.I. could be Microsoft’s ‘iPhone moment.’
