Musk defends cutting off analysts during conference call

06 May, 2018, 00:06 | Author: Salvatore Jensen
  • Musk defends cutting off analysts during conference call

"It's high time we became profitable", said Musk, who also promised restructuring this month to achieve profit goals.

During Wednesday's call, Spak asked about customer reservations for the Model 3 sedan, while Sacconaghi wanted to know about Tesla's capital requirements.

"I think, generally speaking, when CEOs are evasive around number questions, that is worrisome... when financial questions are asked, they should be addressed", he added. But neither can be said to "represent a short seller thesis, not investors", as Musk wrote on Twitter.

Musk's failure to answer questions from the analysts about Tesla's finances caused the stock to go down by 5.6 percent on Thursday.

Tesla CEO Elon Musk on Wednesday made another round of headlines after a handful of contentious exchanges with analysts during an earnings report conference call.

"Reason [the other] question about Model 3 demand is absurd is that Tesla has roughly half a million reservations, despite no advertising & no cars in showrooms", he continued. "They're killing me", he said moments later. The executive has been critical in the past of investors who "short" Tesla shares, meaning they are betting that the stock will decline.




Musk told investors during the earnings call that Model Y production wouldn't start until "early 2020" at the earliest.

Although Musk has insisted the company neither needs nor wants new funding, many believe the company will seek to raise more capital by the end of 2018.

The Model Y will be the new entry level model of Tesla after its launch and it is based on the same platform of Model 3. Elon Musk, CEO of Tesla Motors confirmed during an investor earning call that the company will begin production of smaller Model Y only in 2020. Musk also noted that there are "really big numbers" involved.

Quite recently, Tesla's QI earnings slowed down with a less than expected share drop.

Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours. Then, unsatisfied with the following question, Musk ended the queue and spent 20 minutes answering product-related questions from a YouTube channel host.

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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