Tesla drops in premarket after Musk lets loose on call

Elon Musk has had to contend with production problems with the Model 3 car

Elon Musk has had to contend with production problems with the Model 3 car

Responding to a Twitter user who asked if he should have just blocked the analysts from the Tesla Q1 2018 earnings call, Musk ultimately admitted that ignoring the questions was a foolish decision.

The company said it will reduce capital spending for 2018 from $3.4 billion to $3 billion and said it can be cut further based on the cash it generates. "They're killing me", Musk said as he dismissed an RBC Capital Markets analyst in favour of a blogger who served up queries more to his liking.

Some on Wall Street were puzzled by what they called Musk's "unusual" performance on his latest earnings call, but he did share a few details about Tesla's planned autonomous vehicle network.

Tesla Inc (TSLA.O) Chief Executive Officer Elon Musk defended the snub of two Wall Street analysts on a conference call, proclaiming in a tweet on Friday that they "were trying to justify their Tesla short thesis". During the call, Musk shot down a question from Sanford C. Bernstein & Co. analyst Antonio Sacconaghi about capital investment requirements.

The news that Tesla released in its earnings report was "actually super good", Musk said in another tweet.

Musk complains that he doesn't want to engage with sell-side analysts who are shorting his stock. By Thursday afternoon, Tesla stock had lost almost 6 per cent of its value. He then allowed multiple questions from a person via YouTube.

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Investors have consistently given Musk a pass for frequent misses of lofty production targets in the past, and Ramsey said that probably won't change.

The fallout from Musk's statements was immediately felt by the company's stock.

"We would consider Mr. Musk's at times unfiltered approach as part of the price to be paid for Elon's visionary genius", Efraim Levy, a CFRA Researach analyst, wrote to clients on Thursday. RBC Capital's Joseph Spak then asked about how many Model 3 reservations had been converted into orders for the electric auto.

Tesla tore through $745.3 million in cash in the quarter, due largely to the slow production ramp-up of the Model 3 mass-market electric sedan. For another query, concerning demand for the Model 3, he points to the more than 400,000 auto reservations still waiting to be filled.

"Next, next. Boring bonehead questions are not cool".

"Oh and uh short burn of the century coming soon", he tweeted, a prediction that the stock will rip higher.

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