- Gabe Plotkin’s Melvin Capital hedge fund has been quick shares of Tesla prior to now, based on testimony given to Congress.
- Plotkin was requested by Congress if Tesla CEO Elon Musk’s late January tweet about GameStop inventory might have focused him.
- “We have now been quick Tesla prior to now,” Plotkin instructed Congressman Steve Stivers on Thursday.
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Gabe Plotkin instructed Congress on Thursday that his hedge fund has been quick shares of Tesla inventory prior to now.
Plotkin is the founding father of Melvin Capital, a hedge fund that was caught on the improper aspect of final month’s epic short-squeeze in shares of GameStop. Melvin Capital absorbed a 53% loss in January, prompting a nearly $3 billion investment from Citadel’s Ken Griffin and Point72’s Steve Cohen.
Plotkin was requested the query by Congressman Steve Stivers, who puzzled if Elon Musk’s late January tweet about GameStop was focusing on him.
“We have now been quick Tesla prior to now,” Plotkin mentioned.
Amid the GameStop short-squeeze final month, Elon Musk tweeted, “Gamestonk!!” with a hyperlink to Reddit’s WallStreetBets discussion board. The tweet helped push shares of GameStop increased by as a lot as 157% the next day.
“Do you consider that that tweet was focusing on you since you shorted Tesla inventory prior to now?” Stivers requested Plotkin.
Musk has made clear his disdain for short-sellers, and poked enjoyable at them prior to now. Musk sold red satin short-shorts final yr to have a good time Tesla’s meteoric inventory rise. Tesla had been a closely shorted inventory prior to now, possible irking Musk.
Plotkin did not take Stivers bait, responding to his query with, “We had a really small quick place years in the past in Tesla. That might be pure hypothesis as to his motives and placing that tweet out.”
Plotkin, particular person investor Keith Gill, and the CEOs of Robinhood, Reddit, and Citadel all testified before Congress on Thursday concerning the GameStop short-squeeze saga.