Elon Musk hits back on complaints about Tesla's wild earnings call


Elon Musk hits back on complaints about Tesla's wild earnings call

"The reason the Bernstein question about CapEx was boneheaded was that it had already been answered in the headline of the Q1 newsletter he received beforehand, along with details in the body of the letter", Musk said in a follow-up tweet.

The freakish, contentious call was dubbed "arguably the most unusual call I have experienced in 20 years" by one Morgan Stanley analyst, and several experts on CEO communications, investor relations and corporate governance agreed: Such behavior creates market risks, can erode confidence and raises questions about what analysts will learn about the company in the future.

CNBC reported that Musk's decision to ignore the questions pushed Tesla's stock down by 5.6 percent Thursday.

While Tesla certainly has its share of skeptics, another explanation for the exorbitantly high level of shorting activity is that the company and its mega-cap tech peers are being used as proxies to hedge against the broader stock market, according to S3. "They are actually on the *opposite* side of investors", Musk tweeted. In a series of tweets on Friday, he claimed the two analysts he cut off in questioning "were trying to justify their Tesla short thesis".

"We're going to YouTube", the CEO said, turning to questions from users of the video sharing site. "If you're an analyst, now you've got to wonder, going forward, what kind of information am I going to get?"

"The 2 questioners I ignored on the Q1 call are sell-side analysts who represent a short seller thesis, not investors", Musk tweeted Friday.

Tesla has fallen far short of Musk's promises to ramp up Model 3 production, which the company has said is key to turning a profit.

"We went through the same drama on S & X, and nearly all confirmed in the end. Just spent all night in the factory, not the showroom".

Tesla Inc Chief Executive Officer Elon Musk said it was "foolish" of him to snub Wall Street analysts on a conference call after earnings on Wednesday.

Ultimately, however, Musk maintained that Tesla will soon prove its critics wrong once more.

According to Market Watch, during the Wednesday call, Sacconaghi attempted to ask about Tesla's capital expenditure before getting cut off with a loud "next" from Musk. If Tesla does run short of cash, big institutional investors such as Fidelity likely will come to the rescue, but that may cause a change at the top, Ramsey said. Flamethrowers should arrive just in time.

"The number of sort of third-party contracting companies that we're using has really gotten out of control, so we're going to scrub the barnacles on that front", Musk added.



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