- Tesla CEOElon Musk confused and frustrated analysts during the company’s unusual first-quarter earnings call on Wednesday.
- During the Q&A segment, Musk rejected questions about the company’s finances and the Model 3.
- Tesla‘s stock dropped 8% in after-hours trading on Wednesday and opened down 7% on Thursday. It was down almost 6% when markets closed.
Tesla CEO Elon Musk confused and frustrated analysts during the company’s unusual first-quarter earnings call on Wednesday.
Analysts wanted details about the company’s finances and the Model 3, the mass-market sedan the company introduced in July and has failed to build at the rate it predicted. Musk, it seemed, wanted to talk about the future, not the present.
During the Q&A segment of the call, Musk rejected a question from Sanford C. Bernstein & Co. analyst Antonio Sacconaghi, who asked about the company’s future capital requirements.
“Excuse me. Next. Boring bonehead questions are not cool,” Musk replied.
The next question came from RBC Capital Markets analyst Joseph Spak, who asked about Model 3 reservations.
“These questions are so dry. They’re killing me,” Musk said, before turning to Galileo Russell, a retail investor who runs a YouTube channel about Tesla. Russell was allowed to ask several questions about a range of subjects, none of which concerned Tesla’s financial health.
The call surprised analysts like Morgan Stanley’s Adam Jonas, who told CNBC it was “arguably the most unusual” earnings call he had heard in 20 years.
Business Insider’s Matthew DeBord wrote that the call was “easily the most bizarre Muskian performance yet.”
Tesla’s stock dropped 8% in after-hours trading on Wednesday and opened down 7% on Thursday. When the markets closed on Thursday, its stock was down almost 6%.
The company beat analyst projections on its first-quarter earnings report, posting an adjusted loss of $US3.35 per share on revenue of $US3.41 billion during the first quarter, compared to an expected adjusted loss of $US3.42 per share on revenue of $US3.32 billion, according to Bloomberg. But Tesla also posted the largest quarterly deficit in the company’s 15-year history at $US710 million.
Musk has said the company will become profitable in the second half of the year and won’t need to raise money before 2019, despite scepticism from some investors and analysts. Tesla has been known to spend cash quickly and post consistent losses.
Read more about Tesla’s bizarre first-quarter earnings call:
- Tesla hints at when its $US35,000 Model 3 will actually arrive
- Tesla just doubled down on its plan to create the ‘machine that builds the machine’
- Elon Musk says Tesla ‘restructuring’ so the company can become profitable
- Elon Musk said Tesla’s Uber-like car service will probably arrive by the end of 2019
- Musk on raising more money in 2018: ‘I specifically don’t want to’
- Elon Musk has completely stopped hiding his contempt for Wall Street – and he’s paying the price
- Tesla isn’t spending enough money – and investors should be worried
- Elon Musk says Tesla will begin Model Y production in 2 years and it will be a ‘manufacturing revolution’