Musk Admits Snubbing Analysts Was Probably A Boneheaded Move
- Author: David Armstrong May 05, 2018,
May 05, 2018, 1:47
Bernstein's Sacconaghi and RBC's Spak both rate Tesla shares the equivalent of hold.
Yet the Tesla CEO also mounted a defense of the call that may raise even more questions about his handling of the situation, which continues to overshadow the company's actual results. Next, next. Boring questions are not cool.
In response to the next question from RBC's Joseph Spak about Model 3 reservations, Musk, after a long pause, said, "We're going to go to YouTube".
"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. He goes on to explain how investors have bet against Tesla more than any other firm, "First, it's important to know that Tesla is the most shorted (meaning most bet against) stock on the market & has been for a while".
The next day, the Goldman Sachs analyst reiterated his "sell" rating on Tesla and warned the stock could plunge another 30%.
"Actually, they shouldn't really be writing the story", he said. "Do not buy it if volatility is scary".
The electric-car maker affirmed plans to hit a weekly production rate of 5,000 Model 3 sedans by the end of the second quarter and continues to forecast profits and positive cash flow in the third and fourth quarters. By the time Spak had the floor and inquired about the number of reservations for Tesla's Model 3 vehicle, Musk shut it down by saying he simply didn't want to answer "dry" questions.
"Oh and uh short burn of the century coming soon", he tweeted, a prediction that the stock will rip higher. "Flamethrowers should arrive just in time", the CEO wrote Friday.