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).
A tiff over Taco Tuesday is heating up, with Taco Bell asking U.S. regulators to force a Wyoming-based fast-food chain to abandon its longstanding claim to “Taco Tuesday” as a trademark.
On this edition of Stretching Your Dollar, Bobbi Rebell, author of "Launching Financial Grownups: Live Your Richest Life by Helping Your (Almost) Adult Kids Become Everyday Money Smart," gives some tips on how to save a little extra each week.
Ed Egilinsky, managing director, head of sales and distribution and alternatives at Direxion, offers some advice to investors on how to position their portfolio for retail earnings.
Elon Musk on Tuesday dismissed speculation that he might step down as Tesla's CEO and told the company’s annual shareholders meeting that the electric car and solar panel company would start doing some advertising.
Disney on Tuesday asked a state judge to dismiss a lawsuit filed by a governing board appointed by Gov. Ron DeSantis to oversee Disney World, claiming the company has been the victim of the “weaponizing” powers of government aimed at punishing it for opposing a law dubbed “Don't Say Gay” by critics.
Disgraced Theranos CEO Elizabeth Holmes appears to be soon bound for prison after an appeals court Tuesday rejected her bid to remain free while she tries to overturn her conviction in a blood-testing hoax that brought her fleeting fame and fortune.
