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
2 Comments Play Liam Halligan: the eurozone is about to implode

Liam Halligan: the eurozone is about to implode

The economist and broadcaster told the Citywire Private Office Retreat he believes a potential implosion of the eurozone is the biggest threat markets face today.

1 Comment Play James Anderson: my great fear and hope for the next 10 years

James Anderson: my great fear and hope for the next 10 years

Co-manager of Scottish Mortgage Trust says the financial world has not changed since the banking crisis but predicts the next decade will bring unprecedented upheaval in all areas of the market.

1 Comment Play What wealth managers told clients the day Lehmans went bust

What wealth managers told clients the day Lehmans went bust

We asked wealth managers to go back in time at Citywire North as the 10-year anniversary of the Lehmans collapse approached.

Read More
Your Business: Cover Star Club

Profile: UBS' new UK boss on her plans to win wealth

Profile: UBS' new UK boss on her plans to win wealth

UBS’s wealth arm might be the fourth biggest in the UK, but it still has only 4% of the market share, says incoming boss Eva Lindholm

Wealth Manager on Twitter