Musk has finally admitted that maybe cutting off those analysts
during Tesla's Wednesday earnings call was probably a mistake.
After Musk repeatedly defended his decision to cut off the
analysts, the account @GlobalProTrader pointed out that, if Musk
was concerned about these types of questions, he should've blocked
these short-selling analysts from asking questions.
point apparently changed Musk's mind. "True. And once they were on
the call, I should have answered their questions live. It was
foolish of me to ignore them"
followed up his admission with a typically Muskian smoke-bomb of
distraction, joking that his boring company flamethrowers should
arrive just in time for the "short burn of the century."
followed up with another taunt: "It will be next level. These are
really big numbers."
let's not forget how Musk's last warning - his infamous "Stormy
Day in Shortsville" mockery - worked out for Tesla
Musk's bizarre Wednesday meltdown, when during the conference call
he cut off analysts from Bernstein and RBC simply for asking "boring,
continued this morning on twitter, when he personally attacked
Bernstein's Toni Sacconaghi and RBC's Joe Spak, accusing them of
"trying to justify their Tesla short thesis" and working against
the interest of (bullish) investors.
blame "Russians" when things don't go their way, others find blame
with "sell-side" analysts who are "trying to justify their Tesla
short thesis." And for the record, Tesla fell 5.6% to close
Thursday at $284.45, just above Sacconaghi's $265 price target and
almost in line with Spak's, who sees the shares falling to $280.
course, Musk's latest display of petulant anger, which naturally
spares such analysts as Morgan Stanley's Adam Jonas who have
idiotically high price targets, merely indicates that Musk has no
idea how this works at all: sellside analysts don't do anything to
justify a thesis, whether long or short, that's what buyside
analysts are for;
what the sellside does is serve as conduits to arrange
in the case of RBC and Bernstein, they clearly won't be doing that
any time soon - and certainly won't be invited to participate in
any upcoming Tesla stock offering - so at least their analysis is
credible, which may be what most angered Musk.
no, what infuriated Musk is that Tesla shares had their biggest
drop in more than a month on Thursday after the earnings call, in
which Musk said the questions “are so dry,” and turned instead to
one from a channel on the YouTube video-streaming service; he also
urged 'daytrading' retail investors to sell the stock if they
don't believe the long-term vision of the company.
precisely what they did.
the Musk meltdown was far from done on Twitter, where in his
latest mood swing, he claimed that the recent "news is actually
super good. Model S & X are producing major positive cash flow
& Model 3 is about to do same."
if that's the case why cut off the two questions which both were
explicitly seeking clarity on cash flow and the Model 3 ramp.
in response to a clear objection by a twitter user, who responded
to Musk's slam of the analysts, stating that "The
fact that you were clearly unable or unwilling to give a
straight answer to valid and pertinent cash flow questions is a
huge red flag to any investor" led to the following
then went the pity route, stating that "it’s important to know
that Tesla is the most shorted (meaning most bet against) stock on
the market & has been for a while."
very well may be the most shorted stock, and that's for a reason:
increasingly many believe that this company which burns over $12
million a day and where things are going from bad to chaos, is
just another Ponzi scheme which will never be able to grow into
scalable production, and where quarter after quarter promises of
future production milestones are only made to be broken.
then repeated his original charge, claiming that "The 2
questioners I ignored on the Q1 call are sell-side analysts who
represent a short seller thesis, not investors"
then did Musk reveal his original reason for cutting them off: "The
reason the Bernstein question about CapEx was boneheaded was
that it had already been answered in the headline of the Q1
newsletter he received beforehand, along with details in the
body of the letter."
in just the span of a few hours, Musk changed his story, and
instead of accusing the analysts of "pushing a short thesis", Musk
has now decided the analysts were simply lazy instead, and wanted
to be spoonfed information, which incidentally was not present in
the "newsletter", hence the need for a conference call.
now, the musk tweetstorm continues, as time approaches 5am
Pacific, suggesting Musk has been up all night, much of it spent
tweeting. Readers can
track his latest tweets here.