Markets

Musk defends cutting off analysts during conference call

Musk defends cutting off analysts during conference call

Musk took to Twitter after the call to address some of the controversy surrounding what he said. They had asked about cash requirements and orders for the company's Model 3 vehicle after Tesla announced a record first-quarter loss on Wednesday. "We're going to go as long as there are good questions to answer", he said of the question and answer phase of the call.

Although Musk marked both Sacconaghi and Spak as short sellers, the two actually have hold ratings on Tesla's stock capital.

"Boring, bonehead questions are not cool".

In tweets to his 21.6 million followers, Elon Musk said that the two analysts he had cut off during a call on Wednesday had been advancing a thesis that investors should "short" shares in Tesla, betting on further price falls.

The company is spending too much money to stay ahead of the competition and they were expecting Model 3 which is the entry level model of Tesla to bring in cash.

In its letter, Tesla said Model 3 production hit 2,270 per week at the end of April, the third straight week that it reached over 2,000. Musk says that it will reduce the overall wiring significantly and simplify the production process.

However, Musk said in Tesla's earnings call that the Model Y would be a "manufacturing revolution".

Tesla shares were up slightly (http://www.marketwatch.com/story/elon-musk-acted-like-a-jerk-and-tesla-stock-paid-the-price-2018-05-02) in after-hours trading on Wednesday before the call began but then swung negative. The cash burn could put pressure on the company to borrow more or sell additional shares to raise more cash.

But Model 3 production still isn't near the level of 5,000 per week that Musk promised previous year.

Let's take a look at how the top 3 ETFs with Tesla exposure are performing Friday as of 1:30 Eastern time according to Yahoo Finance.

Musk's Twitter comments seem to have eased investors' nerves.

In the call, Musk devoted 23 minutes in taking questions from a 25-year-old Tesla investor, Galileo Russell, who owns an YouTube investment channel called HyperChange TV. If his account checks out, it's not hard to see why Musk would be annoyed.

Tesla's stock recovered a little on Friday, up 2.4 per cent at $291 in early afternoon trade.

Sacconaghi, one of the rebuffed analysts, wrote: "We do worry that such theatrics will unnecessarily undermine investor confidence in Tesla's outlook".


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