Greenlight Capital founder David Einhorn in the hedge fund’s quarterly report to shareholders offered some strong opinions on Chamath Palihapitiya, one of the dominant players in the SPAC space, as well as Elon Musk. Einhorn directly blames both for contributing to the GameStop short selling frenzy that dominated market headlines in January.
The real jet fuel on the GME squeeze, Einhorn writes, “came from Chamath Palihapitiya and Elon Musk, whose appearances on TV and Twitter, respectively, at a critical moment further destabilized the situation. Mr. Palihapitiya controls SoFi, which competes with Robinhood, and left us with the impression that by destabilizing GME he could harm a competitor. As for Mr. Musk, we are going to defend him, half-heartedly. If regulators wanted Elon Musk to stop manipulating stocks, they should have done so with more than a light slap on the wrist when they accused him of manipulating Tesla’s shares in 2018.”
That portion of his critique begins on page 4. Read more.
