Elon Musk loses R3 billion

Isaac Cain
May 5, 2018

"Clearly, he seems worn out and frustrated, and this is the wrong time to lash out at the investor community", James Albertine, an analyst with Consumers Edge Research, said on Bloomberg Television. Musk's comments may have been enough to assuage them for now. The wisdom behind the hedging strategy is that as these huge, influential stocks go, so does the market - so taking a short position in them means protecting against an index drop.

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".

Yet the Tesla CEO also mounted a defense of the call that may raise even more questions about his handling of the situation, which continues to overshadow the company's actual results.

Another problem: Wall Street analysts from sell-side brokerage firms are notorious for being reluctant to slap "sell" ratings on stocks. "We're going to go as long as there are good questions to answer", he said of the question and answer phase of the call.

The Tesla CEO used Twitter on Friday morning to once again confront his least favorite group of people: those predicting his company's stock will drop. Actually, Musk responded to three separate questions from Tamberrino about the Model 3 and Model Y.

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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.

Moody's Investor Service downgraded Tesla's debt into junk territory back in March, warning at the time that Tesla didn't have cash to cover $3.7 billion for normal operations, capital expenses and debt that come due early next year.

Elon Musk made headlines yesterday after opting to ignore questions from two analysts.

Musk further insulted RBC's Spak by saying he had asked an "absurd" question about demand for Tesla's Model 3 - easily the company's most important vehicle.

Both analysts were not immediately available for a comment on Musk's tweets. Musk explained that the Model 3 already has about half a million reservations, "despite no advertising & no cars in showrooms". According to Musk, a "short burn of the century" would be coming soon, even adding that The Boring Company (Not A) Flamethrowers should arrive just in time.

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