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).
Dollar General workers and labor advocates on Wednesday gathered outside the company's headquarters to voice concerns over safety and health protections. The protest comes ahead of the company's annual shareholder meeting.
Consumers continue to navigate through rising costs at the register, whether it be at the grocery or department store. Beverly Harzog, personal finance and credit card expert with U.S. News & World Report, joined Cheddar News to provide tips on how to get the best deals during your shopping spree.
Delta Airlines responded to a class-action lawsuit that said the company inaccurately claimed to be the world's first "carbon-neutral company, saying it was "without merit."
Maurits Pots, founder and CEO of Tema ETFS, joined Cheddar News to discuss what market trends to look out for with the debt ceiling vote in the backdrop of investors' minds.
Used car prices have risen dramatically recently and continue to remain at a high rate. Cheddar News spoke with some customers and a salesman to get their take.
The U.S. government’s auto safety agency plans to require that all new passenger cars and light trucks include potentially life-saving automatic emergency braking and meet stricter safety standards within three years.
A judge ruled against Boeing and said families of passengers who died in the 737 Max crash in Ethiopia can seek damages for the pain and suffering felt by the victims shortly before the accident.
