Elon Musk To Analysts: Stop With The 'Boring, Bonehead Questions' On Tesla

Ann Santiago
May 5, 2018

Tesla CEO Elon Musk acknowledged it was "foolish" of him to snub a pair of Wall Street analysts during an earnings call that quickly derailed into a circus-like atmosphere. During the call, Musk shot down a question from Sanford C. Bernstein & Co. analyst Antonio Sacconaghi about capital investment requirements.

Ever since the California-based automaker went public, its stock often shows up the list of the most shorted stocks on the market, which means that investors are betting that the stock will lose value.

Tesla's stock immediately began falling as he handed over questions to YouTuber for several minutes. (TSLA) sank this week on concerns over its most recent earnings call, which some on the Street said was the most freaky they have ever experienced. "They're killing me", he said before moving on from Spak and Sacconaghi's questions. First of all, even though short sellers take the position that a stock is headed lower, by most definitions, they are "investors".

Tesla's stock price dropped to $283 on Thursday, down from a record of $389 reached in September.

RBC Capital Markets analyst Joseph Spak: The first question is related to the Model 3 reservations.

The next day, the Goldman Sachs analyst reiterated his "sell" rating on Tesla and warned the stock could plunge another 30%.

"This is a financial analyst call, this is not a TED talk", the analyst said, adding that Musk's behavior was concerning because it shows he's not interested in the financial side of his "visionary" projects.

"Reason RBC question about Model 3 demand is absurd is that Tesla has roughly half a million reservations, despite no advertising & no cars in showrooms". "Next. Boring questions are not cool". Musk was criticized for cutting off two analysts that asked about the electric vehicle and solar panel company's cash needs and orders for its Model-3. For another query, concerning demand for the Model 3, he points to the more than 400,000 auto reservations still waiting to be filled.

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