Elon Musk acted like a jerk, and Tesla stock paid the price


petros
+3
#1
He didnt take his lithium

Tesla Inc. Chief Executive Elon Musk held a long, odd earnings conference call Wednesday in which he insulted analysts, the media, federal regulators and people who died behind the wheel of his cars, and then told anyone concerned about volatility not to invest in his company.

Unsurprisingly, volatility ensued, as Tesla TSLA, -7.45% shares dropped quickly during an increasingly bizarre call with the very analysts and media whom Musk attacked.

Tesla on Wednesday disclosed the largest quarterly loss in the history of a company known far and wide for losing vast sums of money, with a net loss of almost $785 million. The numbers still managed to beat expectations that have been repeatedly lowered for more than a year, which led Musk to take a victory lap on Twitter after losing more than three quarters of a billion dollars in three months.

It only got weirder from there. In his conference-call introduction, Musk confused per-week and per-day production figures, described a “super complicated” robot Tesla designed and built before realizing it could not perform its unnecessary function, then mentioned offhandedly that he planned to restructure the company this month — a disclosure he never revisited to provide more information.

When the question-and-answer session started, Musk turned vitriolic, and not even his fellow executives were safe. After Chief Financial Officer Deepak Ahuja referred to Tesla as “best in class” for batteries while responding to an analyst query, he was interrupted by Musk.

“The best. It is not a class,” Musk interjected.

“Yes, we’re the best. Sorry,” Ahuja replied.

“The best in a class of one,” Musk made sure to point out.

Don’t miss: Elon Musk says robot software will make Tesla worth as much as Apple

Soon, Musk turned his ire toward the financial analysts who were asking the questions. When Bernstein analyst Toni Sacconaghi attempted to ask about capital-expenditure spending and the money needed, Musk cut him off by yelling “Next!” When RBC Capital Markets analyst Joseph Spak then asked how many people with Model 3 reservations were actually taking delivery of their cars, Musk declined to answer any more “boring,” “dry” questions.

“You’re killing me,” he said.

Instead, Musk turned to Galileo Russell, a YouTuber whom Musk allowed to ask a question after an online campaign to appear on the earnings call. Instead of a single question, however, Musk allowed Russell to ask roughly a dozen questions, few with much relation to the quarter in question or near-term Tesla performance. Russell instead focused on long-term goals, leading to an entertaining interview that Musk used to air his ire.

Opinion: Tesla is a large public company, and Elon Musk must start acting like it

Russell’s first question, about Tesla’s plan for an autonomous ride-sharing network, led to a rant about the media in which Musk intimated that federal regulators are only doing their job because of misleading press coverage of drivers who have died behind the wheel of a Tesla while using its inappropriately named “Autopilot” driver-assistance technology. Musk went so far as to suggest that reporters will cause more deaths by covering the deaths of people who are using this new technology that Musk and others believe will soon be widespread.

“If the press is hounding the regulators, and the public is living under the misapprehension that autonomy is less safe because of misleading press, then this is where I find the challenge predicting it to be very difficult,” Musk said. “And, yeah, it’s really incredibly irresponsible of any journalists with integrity to write an article that would lead people to believe that autonomy is less safe. Because people might actually turn it off, and then die.”

When asked again about Autopilot later in the call, he again attacked the media, which Tesla admittedly relies on for free marketing, and then said the blame lies with his customers — the very people who determine Tesla’s success.

“When there is a serious accident, almost always — in fact, maybe always — the case is that it is an experienced user, and the issue is more one of complacency. Like, they get too used to it,” Musk said. “That tends to be more of an issue. It is not a lack of understanding of what Autopilot can do. It’s actually thinking they know more about Autopilot than they do, like quite a significant understanding of it.”


What's going to happen inside your car once you don't have to drive

By the time Baird analyst Ben Kallo took the phone more than an hour into the call, the apprehension was thick. Kallo took more time with an introduction to his question, which gave reasoning for why Musk should answer it and not be angry at him, than actually asking the question.

Musk did not really answer his question, instead complaining about leaks to the media and his own investors.

“I think that if people are concerned about volatility, they should definitely not buy our stock,” Musk said. “I’m not here to convince you to buy our stock. Do not buy it if volatility is scary.”

Opinion: Tesla’s woes are easy to fix—if Elon Musk’s ego allows it

Related: Why I’ll keep shorting Tesla’s stock, and not just because of that earnings call

If volatility is scary, Tesla’s after-hours performance could double as another sequel to “Nightmare on Elm Street.” Shares originally gained after the numbers hit, but soon fell to a decline of about 1%. After Musk was rude to two analysts in a row, ignoring questions that investors actually cared about, that decline suddenly steepened to a loss of about 5%. If that drop holds into Thursday’s trading session, it would add to Tesla’s 3.3% decline so far this year, which is greater than a 1.4% decline for the S&P 500 index SPX, -0.22% in 2018.

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Opinion: Elon Musk acted like a jerk, and Tesla stock paid the price
By Jeremy C. Owens
Published: May 3, 2018 12:31 p.m. ET

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Opinion: Tesla CEO’s performance on earnings call was bizarre and contentious, but it’s investors who are paying

Bloomberg News/Landov
”If people are concerned about volatility, they should definitely not buy our stock,” Tesla Chief Executive Elon Musk said Wednesday.
Tesla Inc. Chief Executive Elon Musk held a long, odd earnings conference call Wednesday in which he insulted analysts, the media, federal regulators and people who died behind the wheel of his cars, and then told anyone concerned about volatility not to invest in his company.

Unsurprisingly, volatility ensued, as Tesla TSLA, -6.76% shares dropped quickly during an increasingly bizarre call with the very analysts and media whom Musk attacked.


Tesla on Wednesday disclosed the largest quarterly loss in the history of a company known far and wide for losing vast sums of money, with a net loss of almost $785 million. The numbers still managed to beat expectations that have been repeatedly lowered for more than a year, which led Musk to take a victory lap on Twitter after losing more than three quarters of a billion dollars in three months.


It only got weirder from there. In his conference-call introduction, Musk confused per-week and per-day production figures, described a “super complicated” robot Tesla designed and built before realizing it could not perform its unnecessary function, then mentioned offhandedly that he planned to restructure the company this month — a disclosure he never revisited to provide more information.

When the question-and-answer session started, Musk turned vitriolic, and not even his fellow executives were safe. After Chief Financial Officer Deepak Ahuja referred to Tesla as “best in class” for batteries while responding to an analyst query, he was interrupted by Musk.

“The best. It is not a class,” Musk interjected.

“Yes, we’re the best. Sorry,” Ahuja replied.

“The best in a class of one,” Musk made sure to point out.

Don’t miss: Elon Musk says robot software will make Tesla worth as much as Apple

Soon, Musk turned his ire toward the financial analysts who were asking the questions. When Bernstein analyst Toni Sacconaghi attempted to ask about capital-expenditure spending and the money needed, Musk cut him off by yelling “Next!” When RBC Capital Markets analyst Joseph Spak then asked how many people with Model 3 reservations were actually taking delivery of their cars, Musk declined to answer any more “boring,” “dry” questions.

“You’re killing me,” he said.


Advertisement
Instead, Musk turned to Galileo Russell, a YouTuber whom Musk allowed to ask a question after an online campaign to appear on the earnings call. Instead of a single question, however, Musk allowed Russell to ask roughly a dozen questions, few with much relation to the quarter in question or near-term Tesla performance. Russell instead focused on long-term goals, leading to an entertaining interview that Musk used to air his ire.

Opinion: Tesla is a large public company, and Elon Musk must start acting like it

Russell’s first question, about Tesla’s plan for an autonomous ride-sharing network, led to a rant about the media in which Musk intimated that federal regulators are only doing their job because of misleading press coverage of drivers who have died behind the wheel of a Tesla while using its inappropriately named “Autopilot” driver-assistance technology. Musk went so far as to suggest that reporters will cause more deaths by covering the deaths of people who are using this new technology that Musk and others believe will soon be widespread.

“If the press is hounding the regulators, and the public is living under the misapprehension that autonomy is less safe because of misleading press, then this is where I find the challenge predicting it to be very difficult,” Musk said. “And, yeah, it’s really incredibly irresponsible of any journalists with integrity to write an article that would lead people to believe that autonomy is less safe. Because people might actually turn it off, and then die.”


Advertisement
When asked again about Autopilot later in the call, he again attacked the media, which Tesla admittedly relies on for free marketing, and then said the blame lies with his customers — the very people who determine Tesla’s success.

“When there is a serious accident, almost always — in fact, maybe always — the case is that it is an experienced user, and the issue is more one of complacency. Like, they get too used to it,” Musk said. “That tends to be more of an issue. It is not a lack of understanding of what Autopilot can do. It’s actually thinking they know more about Autopilot than they do, like quite a significant understanding of it.”


What's going to happen inside your car once you don't have to drive

By the time Baird analyst Ben Kallo took the phone more than an hour into the call, the apprehension was thick. Kallo took more time with an introduction to his question, which gave reasoning for why Musk should answer it and not be angry at him, than actually asking the question.

Musk did not really answer his question, instead complaining about leaks to the media and his own investors.


Advertisement
“I think that if people are concerned about volatility, they should definitely not buy our stock,” Musk said. “I’m not here to convince you to buy our stock. Do not buy it if volatility is scary.”

Opinion: Tesla’s woes are easy to fix—if Elon Musk’s ego allows it

Related: Why I’ll keep shorting Tesla’s stock, and not just because of that earnings call

If volatility is scary, Tesla’s after-hours performance could double as another sequel to “Nightmare on Elm Street.” Shares originally gained after the numbers hit, but soon fell to a decline of about 1%. After Musk was rude to two analysts in a row, ignoring questions that investors actually cared about, that decline suddenly steepened to a loss of about 5%. If that drop holds into Thursday’s trading session, it would add to Tesla’s 3.3% decline so far this year, which is greater than a 1.4% decline for the S&P 500 index SPX, -0.24% in 2018.

Time
Tesla Inc.
Jul 17
Sep 17
Nov 17
Jan 18
Mar 18
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US:TSLA$250$300$350$400$200
A CEO should have to answer to someone when he or she insults the company’s investors, large banks’ analysts and media members in a series of screeds that seems to have an effect on the stock price. That would be the board of directors, but Tesla barely has one: Musk is chairman and has stocked the board with supporters, including his own brother.

Tesla has obvious problems. Executives like chip expert Jim Keller are fleeing, factory workers are attempting to organize as reports suggest an unsafe workplace, and Musk continues to add more pet projects to a company that can’t seem to get up to speed on the project he added years ago, the Model 3. Musk’s increasingly bizarre and combative behavior is not helping.

Tesla has the chance to be a world-changing and profitable company that pushes us to a more sustainable and cleaner future, mostly because of Elon Musk. It also has the chance to be an unmitigated disaster that collapses under the weight of outlandish ambitions and debt, mostly because of Elon Musk. Performances like Tuesday’s conference call only push the needle toward the latter result.

https://www.marketwatch.com/story/el...ice-2018-05-02
 
EagleSmack
+2
#2
Man... Tesla got battered.
 
petros
+1
#3
Down 7% again today.
 
EagleSmack
+1
#4
Quote: Originally Posted by petros View Post

Down 7% again today.

Geez... what happens when the subsidies stop?
 
petros
+1
#5
Bailouts of course.

285.10USD Price decrease -16.05 (-5.33%)
 
Hoid
#6
Buy the dips
 
EagleSmack
+1
#7
Elon Musk's 'boring bonehead' jibe knocks $4bn off Tesla

http://www.telegraph.co.uk/technolog...cks-4bn-tesla/

Elon Musk's off-hand dismissal of questions during Tesla's earnings call has proven expensive, with the billionaire chief executive's jibes at analysts' "boring, bonehead" questions wiping $4bn off the carmaker.


FOUR BILLION DOLLARS.... GONE
 
Hoid
#8
A very wise and experienced investor once told me to buy the d-dips and he was talking about a tired old GE.

If it works on GE -and waltersmack is probably only down 30ish % there - imagine how great it would work on a company like Tesla.

I remember people telling me not to buy Apple over $50
 
captain morgan
+3
#9
Quote: Originally Posted by EagleSmack View Post

Elon Musk's 'boring bonehead' jibe knocks $4bn off Tesla

http://www.telegraph.co.uk/technolog...cks-4bn-tesla/

Elon Musk's off-hand dismissal of questions during Tesla's earnings call has proven expensive, with the billionaire chief executive's jibes at analysts' "boring, bonehead" questions wiping $4bn off the carmaker.


FOUR BILLION DOLLARS.... GONE

.... And that my friends, is the cost of arrogance.
 
EagleSmack
+3
#10
Quote: Originally Posted by Hoid View Post

A very wise and experienced investor once told me to buy the d-dips and he was talking about a tired old GE.

If it works on GE -and waltersmack is probably only down 30ish % there - imagine how great it would work on a company like Tesla.

I remember people telling me not to buy Apple over $50

Need a safe space?
 
pgs
+2
#11
Well the future isn’r Here yet by the looks of things .
 
IdRatherBeSkiing
+2
#12
Quote: Originally Posted by Hoid View Post

A very wise and experienced investor once told me to buy the d-dips and he was talking about a tired old GE.

If it works on GE -and waltersmack is probably only down 30ish % there - imagine how great it would work on a company like Tesla.

I remember people telling me not to buy Apple over $50

I recommend you put your life savings into it. All that money you earned from your paper route.
 
Jinentonix
+4
#13
Quote: Originally Posted by IdRatherBeSkiing View Post

I recommend you put your life savings into it. All that money you earned from your paper route.

But...but... he's almost got enough money to buy that bag of chips he was saving up for.
 
Dixie Cup
+5
#14  Top Rated Post
It may be arrogance or it may be that he's becoming ill. He seems to be displaying signs of dementia. I just went through it with my mom until she passed last year. She eventually became totally paranoid and unreasonable until, towards the end, she couldn't remember anything.
 
captain morgan
+1
#15
Quote: Originally Posted by Dixie Cup View Post

It may be arrogance or it may be that he's becoming ill. He seems to be displaying signs of dementia. I just went through it with my mom until she passed last year. She eventually became totally paranoid and unreasonable until, towards the end, she couldn't remember anything.

That is a hard road to travel.

It take a great deal of patience and understanding during a very difficult time
 
Danbones
#16
I wonder if he is using zero interest borrowing to buy back his stocks at a far cheaper rate now...

that's what a really smart person would be doing.

especially with the robot thing on the horizon...
 
petros
+1
#17
Quote: Originally Posted by Hoid View Post

A very wise and experienced investor once told me to buy the d-dips and he was talking about a tired old GE.

If it works on GE -and waltersmack is probably only down 30ish % there - imagine how great it would work on a company like Tesla.

I remember people telling me not to buy Apple over $50

Why was GE one of CPP Investment Board's biggest single stock purchases recently?
 
EagleSmack
#18
Elon Musk Has A "Next Level" Warning For Tesla Shorts: "Short Burn Of The Century Coming Soon"


http://www.zerohedge.com/news/2018-0...g-short-thesis


He's having Idiot Remorse.
 
petros
#19
Well Maye Musk your son answered question of "at what age do you stop caring?"

It's 46 for Elon.
 
Danbones
+1
#20
Quote: Originally Posted by EagleSmack View Post

Elon Musk Has A "Next Level" Warning For Tesla Shorts: "Short Burn Of The Century Coming Soon"


http://www.zerohedge.com/news/2018-0...g-short-thesis


He's having Idiot Remorse.

I'd say you have just made my point....You have to read into these type things sometimes at what is the motive for a smart person to play so dumb. Especially when everyone else is buying back all their stocks with zero interest money too. He just saved himself 4 billion bucks worth, and also let the stalwart supporters know it was a deek...without actually really giving the game a way too much.
 
captain morgan
+2
#21
Quote: Originally Posted by EagleSmack View Post

Elon Musk Has A "Next Level" Warning For Tesla Shorts: "Short Burn Of The Century Coming Soon"


http://www.zerohedge.com/news/2018-0...g-short-thesis


He's having Idiot Remorse.

The short sellers will be having a field day with Tesla for the foreseeable future and considering that Musk has been living off of the investors for as long as he has, he should know that the investor body (especially institutional) are very fickle.
 
Danbones
#22
Buying Tesla after big stock market losses has paid off in the past

In the last two days, Tesla shares have fallen 15.3 percent; a two-day loss of 15 percent or more has only occurred six times since its IPO in 2010.

When averaged out a week later, it has returned 3.96 percent, trading positively about 67 percent of the time, according to an analysis using Kensho.

In the month-later period, the average return goes up to 19.25 percent, trading positively 83 percent of the time, according to Kensho.

But in the past, the stock was able to rebound after big equity declines.
https://www.cnbc.com/2018/03/29/buyi...-the-past.html

"It isn't about knowledge, its about how to use knowledge." - Alvin Toffler.( Future Shock)

Musk is gambling a little... he has to meet bond payments in the not too distant future, and this is his way of creating some money flow to deal with that. I bet just the "navigation for robots", and the "production of robots with robots" and the 'battery developements" type things will put him in the black.
Last edited by Danbones; May 4th, 2018 at 07:18 PM..
 
EagleSmack
+2
#23
As Tesla hits the skids, one market watcher sees a ‘line in the sand’ for investors

http://www.cnbc.com/2018/05/16/as-te...-the-sand.html

YIKES!
 
EagleSmack
+2
#24
Tesla to cut 9% of jobs in 'difficult but necessary' reorganization

http://www.cnbc.com/2018/06/12/tesla...ny-report.html

But.... but... the climate!
 
Hoof Hearted
+2
#25
Dixie Cup wrote...

"He seems to be displaying signs of dementia. My Mom eventually became totally paranoid and unreasonable until, towards the end, she couldn't remember anything".

Are you talking about Musk, or Hoid?
 
Bar Sinister
#26
I really have to laugh at the Elon Musk detractors. Here is a man who created several major companies out of nothing and continues to lead the way in a variety of technologies. Does anyone else have a reusable booster rocket yet?


And the supreme irony? Musk is a go for broke capitalist; exactly the sort of entrepreneur people like CM, Eaglesmack, and Petros normally idolize. Go figure.



The 7 Biggest Moments of Elon Musk's Extraordinary Career

https://www.inc.com/graham-winfrey/7...sk-career.html


Elon Musk Biography: Success Story of The 21st Century Innovator




https://astrumpeople.com/elon-musk-biography/


A Comprehensive List of Elon Musk’s Breakthroughs in 2017

https://futurism.com/images/a-compre...oughs-in-2017/
 
Bar Sinister
#27
Tesla Installs World's Largest Battery in Australia


https://science.howstuffworks.com/en...-australia.htm
 
EagleSmack
#28
Elon Musk’s bizarre tweets are raising red flags on Wall Street
 
bill barilko
#29
Probably on dope.
 
EagleSmack
+3
#30
Tesla reported the biggest loss in its history

http://money.cnn.com/2018/08/01/news...kup/index.html