By Kim Khan
Investing.com – Hedge fund manager David Einhorn tweeted out another letter Thursday sent to Tesla (NASDAQ:) CEO Elon Musk questioning the automaker’s financial results.
Greenlight Capital founder Einhorn, who tweeted out a letter in November questioning whether Tesla’s accounts receivable “even exist,” tweeted out another letter today asking for explanations about its auto gross margin reported yesterday.
“This quarter your production was lower and split across two factories, affecting cost absorption, particularly in Fremont,” Einhorn wrote. “Your average selling price was lower. Your mix had fewer high margin models S/X. You ramped up Model Y. Both factories were interrupted driving up costs. And, though you didn’t discuss it, currency should have hit your margin 2-3% compared to last quarter.”
“All of these factors appear to be headwinds to your auto gross margin (excluding Regulatory credit sales) – which barely budged,” he said.
Tesla reported first-quarter an auto gross margin of 25.5%, up from 22.5% in the fourth quarter.
Shares of Tesla rose 4.3% in morning trading.
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