Tuesday, 22 May, 2018

What Elon Musk Actually Said In The Tesla Earnings Report Conference Call

Tesla Model 3 Musk defends cutting off 'short seller thesis' analysts
Guillermo Lane | 05 May, 2018, 01:34

Elon Musk has admitted it was "foolish" to ignore analyst questions on Tesla's financial results call this week, though insists he had good reason to shut down the "boneheaded" comments.

Tesla shares fell as much as 1.2 per cent as of 9:35 a.m.in NY, a day after Musk's behavior on the company's earnings call sent the stock down by the most in more than a month. "Shorting" means they were betting the stock would fall, but the two have "hold" or "neutral' ratings on the stock, according to Thomson Reuters data".

In the following image, I've blown up the estimate page for Tesla on CNBC detailing quarterly street averages, and remember, these are on a non-GAAP basis, and was from the day after earnings were reported.

During the call, Musk shot down a question from Sanford C. Bernstein & Co. analyst Antonio Sacconaghi about capital investment requirements.

The spat comes at a crunch time for Tesla, when it is struggling to ramp up production of its Model 3 sedan, on which its profitability depends.

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. But short sellers, who shorted almost 400,000 shares on Thursday, doubled that amount on Friday, according to financial analytics firm S3 Partners.

He then devoted his allotted 15 minutes to disparaging Musk and arguing that Tesla has no protective moat to give it a competitive advantage, even when it came to technology.

Laurent Koscielny a World Cup doubt after suffering suspected ruptured Achilles
The hosts continued to threaten with Costa and Griezmann up front and had a few good chances to make it 2-0. We use cookies to give you the best experience on our website and bring you more relevant advertising.


During early trading on Wednesday, Tesla's price of shares fell 6.1 percent, dipping to $282.02 per share.

Sacconaghi has a US$265 price target on the stock, while Spak sees the shares falling to US$280.

"I'm not here to convince you to buy our stock", Musk said.

"The number of sort of third-party contracting companies that we're using has really gotten out of control, so we're going to scrub the barnacles on that front", Musk added.

However, Musk said in Tesla's earnings call that the Model Y would be a "manufacturing revolution".

Musk tweeted that analysts at Sanford C. Bernstein & Co. and RBC Capital Markets were representing "a short seller thesis, not investors" when posing questions that Musk cut off during the Wednesday call. He also says, "They are actually on the opposite side of investors".

"While they may be dry in nature, we argue such questions are extremely important for a highly leveraged and cash-hungry company", Morgan Stanley analyst Adam Jonas wrote in a note to investors.

Recommended

Unbreakable Kimmy Schmidt is to end after Season 4 Unbreakable Kimmy Schmidt is to end after Season 4 The show featured Tina Fey's trademark brand of wacky but topical comedy, often mining serious issues for laughs. But after four seasons and over 50 episodes, word is that everyone felt it was time to end the series.

Canada's trade gap swells but import, export growth signals economic momentum Canada's trade gap swells but import, export growth signals economic momentum The Commerce Department said the trade deficit tumbled 15.2 percent to $49.0 billion in March, the lowest level since September. March's drop in core capital goods orders and shipments suggest business spending on equipment is slowing.

Trump name can come off building, judge rules Trump name can come off building, judge rules The once ubiquitous Trump brand has become divisive since Trump entered the presidential campaign. At that time , 63 percent of condo owners who responded wanted to remove the Trump sign.

National Review Endorses Morrisey in GOP Senate Primary National Review Endorses Morrisey in GOP Senate Primary Blankenship has expressed admiration for Trump's ability to confound expectations and win the White House. Since 2000 the Republican presidential nominee has carried the state.

Boy Scouts Drops "Boy" from Its Name Boy Scouts Drops This paradigm shift is meant to show "what it's like to be a Scout from a kid's point of view", according to the press release. "I think a lot of our programs are gender-neutral, but we'd just always been the 'Boys Scouts, ' " he said .

Congress is a gold medalist in corruption: PM Modi The youth with entrepreneurial tendency made Bengaluru a startup, but Congress turned it into "pothole club", Modi said. You brought Gabbar Singh Tax (an allusion to GST) but this time you have gone even further.

Mattis signals ongoing commitment to the Afghan war Mattis signals ongoing commitment to the Afghan war Special Inspector General John Sopko's quarterly report to Congress also said insurgents have made gains in the amount of territory they controlled in 2017.

Chinese FM met Kim Jong Un in North Korea: Chinese foreign ministry Chinese FM met Kim Jong Un in North Korea: Chinese foreign ministry However, she added, "The welfare and safety of USA citizens overseas is one of the highest priorities of the Department of State". Kim Sang-deok formerly taught accounting at Yanbian University of Science and Technology in China, near the North Korean border.

Reds fired up for Real Champions League final Reds fired up for Real Champions League final But it's Real Madrid . "They are quite confident but we don't care for that, we are focused on our job", said the Croatia global . To say Roma now believed they could qualify would be an overstatement, but they had at least given their fans a glimmer of hope.

Switzerland deems Mahmoud Abbas's speech 'unacceptable' Switzerland deems Mahmoud Abbas's speech 'unacceptable' Liberal Jewish groups like J Street and American Friends of Peace Now said his remarks were incendiary and offensive. There can be no peace with holocaust denying anti-Semites. "It does, however, elevate hatred to a new level".

Kilauea volcano in Hawaii could erupt after hundreds of small earthquakes Kilauea volcano in Hawaii could erupt after hundreds of small earthquakes Kua O Ka La Public Charter School in Pahoa was closed today because of the earthquakes , and will also be closed tomorrow. During that eruption, at least 24 separate volcanic vents opened up and lava covered about 3,900 acres.

What Mueller Wants to Ask Trump About Obstruction, and What It Means What Mueller Wants to Ask Trump About Obstruction, and What It Means Dowd told the publication that Mueller is considering subpoenaing the president if he does not agree to an interview. In a second tweet, Trump said: "It would seem very hard to obstruct justice for a crime that never happened".

Liverpool star, recruited for IDF service, wins player of the year award Liverpool star, recruited for IDF service, wins player of the year award The Egyptian, 25, becomes the first African victor of the football's oldest individual award, which has been running since 1948. Salah and De Bruyne, who helped City claim the Premier League title, collected more than 90 per cent of the journalists' votes.

Federation Internationale de Football Association 18 to get free World Cup mode, EA Sports announces Federation Internationale de Football Association  18 to get free World Cup mode, EA Sports announces It would be a shame if countries that we always support were to lobby against the USA bid. In recent weeks, at least three countries have announced their support for Morocco .

Gas prices up 39 cents from a year ago Gas prices up 39 cents from a year ago As KTSM previously reported, the rising gas prices can be linked to a steady incline in USA crude oil prices over the past year. This time past year , El Paso drivers were paying just $2.26 for a gallon of regular gas, that's 78 cents less than now.