Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Crispin Odey: Tesla feels like it's entering 'final stage' of life

5 Comments
Crispin Odey: Tesla feels like it's entering 'final stage' of life

Crispin Odey believes the end could be nigh for Tesla.

While this prognosis may send shivers down the spine of Tesla's long only investors, Odey will be hoping his prediction rings true after his big short on the electric car maker. 

'Shorts like Tesla have been difficult to hold on to,' Odey wrote in a letter to investors.

'[However] Tesla feels like it is entering the final stage of its life.' 

Odey will be feeling pretty content with the call after it emerged short-sellers were sitting on more than $1.2 billion (£940 million) worth of mark-to-market profits since chief executive Elon Musk's shock tweet on 7 August stating that he planned to take the firm private.  

The shares have lost around a fifth of their value since then, leaving the Odey European fund, which holds the car maker as its largest short position, in good shape.  

Shares in Tesla may be set for another turbulent week after Musk admitted, in an interview with the New York Times at the end of last week, that nobody had reviewed his tweet.

In an emotional interview with the paper, a tearful Musk described the past year as 'the most difficult and painful year of my career'. 

Odey went on to compare Musk's behaviour to amateur sailor Donald Crowhurst, who set off in the 1960s on a solo voyage around the world and failed to return. 

In a typically forthright letter, Odey also had a few choice words for banks, comparing them to department stores which failed to deal with the threat from online retailers.

'They [banks] have been the serial lagging sector, luring every year value investors to their deaths,' Odey wrote. 

'Banks are watching all their profitable activities - foreign exchange, consumer finance, small company lending - being taken away by fintech companies and peer-to-peer lenders.' 

'This is frightening for investors because it does not make for repeatable economic growth' 

After a torrid two years, which saw Odey's European short fund lose 20% in 2017 following a 49.5% loss in 2016, things are looking better for Odey this year, with the fund up 25.8% in the first seven months of 2018. 

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play CEO Tapes: ESG - we need to get better at the 'G'

CEO Tapes: ESG - we need to get better at the 'G'

In the second part of our CEO series, we explore the burgeoning ESG concept with fund bosses outlining how they try to make a difference.

Play 'They've done it before': Feeney on Quilter quitters

'They've done it before': Feeney on Quilter quitters

In the second part of our exclusive video interview with Paul Feeney, we hear the Quilter CEO's views on the investment managers leaving the firm, along with his promise to platform users.

Play CEO Tapes: women - ask what's in it for you?

CEO Tapes: women - ask what's in it for you?

In a new CEO series, a revealing film discusses the myth that asset management is a meritocracy and why men tend to be more pushy when it comes to pay rises and promotions.

Read More
Your Business: Cover Star Club

Profile: how millennials and Gulf cash are remaking this private office

Profile: how millennials and Gulf cash are remaking this private office

LJ Partnership is not your typical small family office: straddling four continents, the business boasts an interesting shareholder list.

Wealth Manager on Twitter