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Thread: Elon Musk picked a bad time to burn bridges on Wall Street

  1. #1
    Veteran Member bajisima's Avatar
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    Elon Musk picked a bad time to burn bridges on Wall Street

    Caught some of his rant. He really went off. Sounded a bit "Trumpian."

    The Tesla boss has a well-earned reputation for being a daring leader who doesn't follow the rules. But his latest stunt insulting analysts during a bizarre conference call threatens to alienate Tesla (TSLA) from the capital markets that the company needs to finance its big dreams.

    During the call, Musk slammed one analyst for asking "boring, bonehead questions" and quickly shut down another for asking about the Model 3. Instead of answering these legitimate questions about Tesla's serious cash problems, Musk took a dozen questions for 23 minutes from a blogger with a YouTube channel.

    The strange call quickly overshadowed Tesla's decent results, sending the stock careening lower. Tesla tumbled 7% on Thursday.

    The timing for Musk's antics couldn't be worse. Many analysts believe Tesla will turn to Wall Street for more cash because it burned through so much trying to make the Model 3, which is supposed to be its first mass-market electric car. Despite "important progress" on the Model 3, Moody's Investors Service said on Thursday that Tesla will need to raise about $2 billion by selling stock or debt. Tesla has denied it needs more cash but some on the Street think it will need at least $3 billion.

    Musk's decision to "shut down transparency about what's really going on" will make it "very, very difficult" for Tesla to issue more debt, Osborne said.

    Musk's performance appears to have deepened growing skepticism among retail and institutional investors about the very real challenges facing his company.

    Elon Musk's bizarre earnings call risks burning bridges with Wall Street
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    Spock of Vulcan Ian Jeffrey's Avatar
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    That's not good. Hopefully he's got a PR person who can fix it.
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    Quote Originally Posted by Ian Jeffrey View Post
    That's not good. Hopefully he's got a PR person who can fix it.
    He doesn't need PR, he needs production of the Model 3. Musk said $TSLA cash flow positive by Q3/Q4 and if that's the case they won't need a capital raise, right?

    We'll see. In the meantime, he better start focusing a little more on Model 3's and a little less on futuristic Martian colonies because what I fear from this guy, and he's a brilliant guy, no doubt, is that he'll stretch himself thin and make himself irrelevant. The shorts are seeing this as Musk distracting from bad underlying financials.
    Last edited by publius3; 3rd May 2018 at 01:56 PM.
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    Veteran Member bajisima's Avatar
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    Quote Originally Posted by publius3 View Post
    He doesn't need PR, he needs production of the Model 3. Musk said $TSLA cash flow positive by Q3/Q4 and if that's the case they won't need a capital raise, right?

    We'll see. In the meantime, he better start focusing a little more on Model 3's and a little less on futuristic Martian colonies because what I fear from this guy, and he's a brilliant guy, no doubt, is that he'll stretch himself thin and make himself irrelevant. The shorts are seeing this as Musk distracting from bad underlying financials.
    If you read bios on Musk, many people that know him claim he cant focus. He goes from one idea to the next and often will jump from one industry to the other. He supposedly wakes up employees in the middle of the night to come and do something for him if he gets a thought. His problem is his lack of concentration on one thing at a time. Some now are saying Tesla is in serious trouble and he cant fix it. He is one of those eccentric inventors who think money gets in the way of everything. I suppose I can understand that but in reality money is how business works.
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    Quote Originally Posted by publius3 View Post
    He doesn't need PR, he needs production of the Model 3. Musk said $TSLA cash flow positive by Q3/Q4 and if that's the case they won't need a capital raise, right?

    We'll see. In the meantime, he better start focusing a little more on Model 3's and a little less on futuristic Martian colonies because what I fear from this guy, and he's a brilliant guy, no doubt, is that he'll stretch himself thin and make himself irrelevant. The shorts are seeing this as Musk distracting from bad underlying financials.
    Telsa would fold in just a few days if it had some major issue.

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    Veteran Member bajisima's Avatar
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    Musk really isnt doing himself any favors. He appears to be imploding.

    Elon Musk, the feisty leader of an empire to build new-age cars and rockets whose dismissive call this week with financial analysts has drawn controversy, last month hung up on the top U.S. transportation accident investigator.

    Robert Sumwalt, the chairman of the National Transportation Safety Board, held a phone call with Musk on April 11 to tell him that blog posts by Tesla Inc. casting blame on the driver of a Model X for a fatal California crash had gone too far. The NTSB had earlier warned Tesla not to make statements about the accident while it was being investigated by the board. Sumwalt then said he was taking the unusual step of kicking the company’s representatives off the investigation.

    https://www.bloomberg.com/news/artic...ut-tesla-probe

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    Quote Originally Posted by bajisima View Post
    Musk really isnt doing himself any favors. He appears to be imploding.

    Elon Musk, the feisty leader of an empire to build new-age cars and rockets whose dismissive call this week with financial analysts has drawn controversy, last month hung up on the top U.S. transportation accident investigator.

    Robert Sumwalt, the chairman of the National Transportation Safety Board, held a phone call with Musk on April 11 to tell him that blog posts by Tesla Inc. casting blame on the driver of a Model X for a fatal California crash had gone too far. The NTSB had earlier warned Tesla not to make statements about the accident while it was being investigated by the board. Sumwalt then said he was taking the unusual step of kicking the company’s representatives off the investigation.

    https://www.bloomberg.com/news/artic...ut-tesla-probe
    Was that the accident where the driver was in the PASSENGER seat? That one?

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    Quote Originally Posted by Libertine View Post
    Telsa would fold in just a few days if it had some major issue.
    Well it does have major issues of course, they are losing money. But the secondary issue is that one really should question the valuation if Tesla pulls off the Model 3 rollout and becomes profitable. I don't see a $40-$50bn market cap company in either event.

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