Published: Sat, May 05, 2018
Research | By Jennifer Evans

Tesla's Musk calls Wall Street snub 'foolish' but defends his behaviour

Tesla's Musk calls Wall Street snub 'foolish' but defends his behaviour

Musk exhausted of finance questions, so he cut off an analyst this way: "We're going to YouTube".

"Excuse me. Next, next", an irritated Musk said on the conference call with analysts who follow the company. Tesla's stock price tumbled in after-hours trading during the investor call. Both Toni Sacconaghi of Bernstein and RBC's Joseph Spak have the equivalent of "neutral" ratings on Tesla. "And once they were on the call, I should have answered their questions live". Musk's comments may have been enough to assuage them for now.

Sacconaghi fired back at Musk Thursday, telling CNBC: "This is a financial analyst call, this is not a TED talk".

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.

Wall Street weighed in by putting a halt to its recent hammering of Tesla - its shares rose more than 1 percent in morning trade. But short sellers, who shorted almost 400,000 shares on Thursday, doubled that amount on Friday, according to financial analytics firm S3 Partners.

Elon Musk has revealed that the Tesla Model Y will arrive in early 2020, rescheduling initial plans to bring the next member of the Tesla line-up to market at some stage in 2019. Chief executive Elon Musk is already talking candidly about the new vehicle, and the firm has also hinted at the Model Y's design through an official teaser image released past year.

Musk, who has tweeted about sleeping at the Tesla factory, said they've overcome automation failures like a "fluffer bot" that couldn't install fluffy Fiberglas mats atop battery packs. Snap Inc.'s Evan Spiegel and Bobby Murphy saw their net worth fall more than 22% on Wednesday after the company said revenue gains will be even smaller in the current quarter as users of its mobile photo-sharing app revolt over a redesign.

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. He also says, "They are actually on the opposite side of investors".

"HyperChange represented actual investors, so I switched to them", he wrote. He devoted 23 minutes to 25-year-old Tesla investor, Galileo Russell, who runs HyperChange TV.

At least three brokerages cut price targets on the stock following the call.

Sacconaghi wrote in a note on Thursday that "we do worry that such theatrics will unnecessarily undermine investor confidence in Tesla's outlook".

Musk himself acknowledged during Wednesday's call that Tesla stock isn't for the faint of heart.

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