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Major Hedge Fund Capitulates On Tesla Short As David Einhorn Accuses Musk Of "Significant Fraud

• by Tyler Durden

-maker's third-quarter results allayed - at least for the time being - investor fear about declining demand for Tesla electric cars and the company's ability to churn out vehicles while maintaining strong margins and not burning through cash.

Among them is one of Brazil's largest hedge-fund managers.

According to Bloomberg, Brazil's Adam Capital scrapped its short position in Tesla's shares, saying in its latest letter to clients that Tesla's improving operating efficiency has hurt its investment thesis.

Adam Capital, which manages about $5.9 billion, was founded in 2016 by Marcio Appel and Andre Salgado, who according to Bloomberg were hedge fund veterans from Banco Safra SA and Banco Santander's Brazilian unit.

The firm quickly became one of the nation's biggest independent hedge-fund managers, with its flagship fund crossing 10 billion reais under management in less than year after its launch.