Musk Admits Snubbing Analysts Was Probably A Boneheaded Move

Musk Admits Snubbing Analysts Was Probably A Boneheaded Move

Musk then announced that he was "going to go to YouTube" and take questions from a blogger there who had previously gotten Musk's approval to ask a question on the call via a Twitter campaign.

Tesla's (TSLA) earnings call was moving along about as normally as a Tesla earnings call could ( when Bernstein analyst Toni Sacconaghi asked about the company's capital requirements.

Musk's refusal to answer "boring" Wall Street questions about finances sent the electric vehicle maker's shares down as much as 7 percent on Thursday.

He said that the questions had come from "sell-side analysts. trying to justify their Tesla short thesis".

Musk tweeted that analysts at Sanford C. Bernstein & Co. and RBC Capital Markets were representing "a short seller thesis, not investors" when posing questions that Musk cut off during the Wednesday call.

Tesla posted a net loss of $710 million on $3.41 billion in revenue for the January-March quarter.

Tesla's next model bound for production is the Model Y, a small SUV related to the Model 3.

Musk said a question about capital expenditures was "boneheaded" because the information was contained in Tesla's letter to shareholders. "It was foolish of me to ignore them", Musk wrote in a tweet.

Elon Musk, the Tesla Chief Executive stated his high production objective of rolling out 6,000 cars per week by the end of June as per a leaked email to his employee, by running its Freemont, California factory round the clock, with more of overtimes and employee recruitment.

Quite recently, Tesla's QI earnings slowed down with a less than expected share drop. The analysts were not happy, and it was reflected in Tesla's stock price. But short sellers, who shorted almost 400,000 shares on Thursday, doubled that amount on Friday, according to financial analytics firm S3 Partners. They are actually on the *opposite* side.

CNBC also reports that Musk made a decision to take several questions from a 25-year-old retail investor and owner of a YouTube channel, Galileo Russell, which is unusual because questions on earnings calls are traditionally reserved for analysts, professional investors, and sometimes media. "We wonder what spending is deferred and for how long", CFRA analyst Efraim Levy wrote in a note to investors.

Related Articles