Antonio M. Sacconaghi – Sanford C. Bernstein & Co. LLC
— And so where specifically will you be in terms of capital requirements?
Elon Reeve Musk – Tesla, Inc. (TSLA)
— Excuse me. Next. Boring bonehead questions are not cool. Next?
Imagine you’ve invested your hard-earned savings into a company. It shouldn’t be too hard to imagine, as- I’m sure- many of you have, either directly or through your 401k. Next, imagine asking that company a perfectly reasonable and relevant question, and having the CEO of that company insinuate that you were a “boring bonehead”. Would you want to continue to invest in that company? Forget the language used- we have a self-described pussy grabber occupying the highest office in the land, after all. Forget the language, and focus on the misdirection. What we are talking about here is a huge, publicly traded company that is brushing aside questions about its capital requirements just weeks after missing major production and profitability milestones. And … we’re just supposed to be OK with this?
That’s the point that stock analysts at Zero Hedge are making about Tesla (TSLA). Zero Hedge rightly points out that “until this point, it has been a joy ride for Elon Musk and Tesla. The stock has done nothing but go up and Musk has been heralded by pretty much everybody as the second coming. Books have been written about him, case studies have been done about him and he is often mentioned by random people in just normal, day to day conversation. Elon’s living the easy part.”
The hard part, it’s insinuated, is what’s about to come. That is: accountability.
“Facing challenges and tough questions is a more difficult part,” the article continues. “And, as a public company, it is a way of life. So, when Elon Musk told a couple of analysts on his last conference call that he was not interested in answering their questions, but rather deferring to a 25-year-old retail shareholder on YouTube, there’s a reason the stock went down $15 after hours.” (Emphasis mine.)
What do you guys think? Are Elon and Tesla starting to crack under the stress of delivering on a world-changing promise, or is it totally OK for them to duck financial questions they deem irrelevant to their narrative? (Here’s a hint.) Let us know what you think of this latest twist in the TSLA stock saga in the comments section at the bottom of the page. And, if your interested, here is a transcript of the shareholder call in question— lots of good information there, regardless of your interpretation of things!