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).
Kim Perell, author and entrepreneur, shares actionable tips and tricks to help current and aspiring entrepreneurs kick off 2026 with confidence and momentum.
Computer chipmaker Nvidia is poised to release a quarterly earnings report that is expected to either deepen a recent downturn in the stock market or prompt an ebullient sigh of relief among investors increasingly worried the world’s most valuable company is perched upon an artificial intelligence bubble about to burst.
Emera CEO Scott Balfour discusses soaring energy demand, AI-driven grid challenges, clean-power investments, and how the company is building a resilient future.
JB Mackenzie discusses Robinhood’s new entertainment prediction markets, letting users engage with pop culture, award shows, and more through low-stakes bets.
Rhett Power shares his startup journey, lessons from his early years and insights from his book on overcoming negative self-talk to lead with confidence.
Despite inflation, Americans aren’t giving up the gym. Crunch Fitness CEO Jim Rowley discusses strong growth, value-driven expansion and what the future holds.
Home prices far outpacing incomes, low inventory, and higher living costs are reshaping the market. WSJ’s Veronica Dagher breaks down the challenges ahead.
As commercial options tighten, more travelers are turning to private aviation. Wheels Up CEO George Mattson breaks down capacity and demand challenges.
Layoffs, hiring slowdowns, and shifting skill demands dominate this year’s job talk. LinkedIn’s Kory Kantenga explains what workers should watch for next.
