Musk Admits Snubbing Analysts Was Probably A Boneheaded Move
- Author: Toni Ryan May 05, 2018,
May 05, 2018, 1:31
And Musk accurately noted that Tesla is a favorite of short sellers, who bet against stocks. "They're killing me", Musk said in response to a later question about reservations for the Tesla Model 3 vehicle, which has been the subject of speculation regarding its production problems. A "vast majority" of the company's manufacturing process is already automated, but Musk seems to be planning to take it to a whole new level. "They are actually on the opposite side of investors", Musk tweeted earlier Friday. That's quite interesting given the company is still facing difficulties with the Model 3 production.
Levy added that although Tesla management should be "more disciplined publicly", the key to the stock is whether Tesla can ramp up production of the Model 3, its mass-market electric vehicle.
Both Sacconaghi and Spak have "moderate" views on Tesla. Fresh design cues from the Model 3 such as the flat, grille-free front end could also define the new auto.
Later, he said moats are lame, that his company "is a leaky sieve of information" and that Tesla's pickup is going to be great: "We have way more cool things than we know what to do".
However, the firm likes to shuffle its powertrain offerings around often and without warning, so however the Model 3 line-up looks in 2019, it is likely to be replicated by the first Model Ys.More news: Facebook's Cambridge Analytica data scandal
Given a platform share with the Model 3 has now been confirmed, it's extremely likely that drivetrains will be the same, too. Tesla told shareholders that it expects to achieve the original goal of 5,000 units per week in a couple of months. Yet some investors are concerned that the company will need to raise additional capital by the end of the year.
Tesla burned through more than $745 million of its cash during the first quarter of 2018. The Tesla Model Y launch date is still a couple of years away, but the vehicle could significantly boost Tesla's revenues. "Excuse me, next", Musk dismissed the question.
Musk referenced a question from Bernstein analyst Toni Sacconaghi, who had asked about the capital requirements Tesla may need to keep the lights on and its assembly lines running. The analysts were not happy, and it was reflected in Tesla's stock price.
While Tesla is seen by most as a "story stock" - meaning that its value is mostly linked to its future potential and all the products in its pipeline rather than its current financial results, historically, Tesla had its biggest stock price increases after reporting a profit.
Tesla posted a net loss of $710 million on $3.41 billion in revenue for the January-March quarter.