Musk defends cutting off analysts during conference call

Daimler advanced technology trucks at the ACTExpo

"So bankrupt, you can't believe it".

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Musk also revealed further details on the Tesla electric minibus, first alluded to by Musk at the Master Plan conference.

As for whether this is the last of Musk's unusual behavior, that seems unlikely.

The gaffe could be especially painful as Tesla might need to jump back into the capital markets to subsidize Model 3 production. Tesla has more than 450,000 waiting orders, but it can't monetize them unless the cars can be assembled en masse. He also says, "They are actually on the opposite side of investors". Morgan Stanley's Adam Jonas said it was "the most unusual call I have experienced in 20 years on the sell-side", while Eric Schiffer, head of equity firm Patriarch Organization called it "the single greatest CEO meltdown in American auto history", Reuters reports.

Tesla burned through more than $745 million of its cash during the first quarter of 2018. Free cash flow, which is cash generated minus capital spending, was a negative $1 billion.


As for the Model 3 reservations question, he described that as "absurd" on Twitter.

For one, there is concern Tesla won't be able to maintain demand for the Model 3, because of production issues that have stalled deliveries.

"This is what puts companies out of business", said Gartner analyst Michael Ramsey. "Excuse me, next", Musk dismissed the question. Investors see the targets as shooting for the stars, and they applaud if Tesla makes it only halfway there, he said.

Musk said that a "short burn of the century" is "coming soon". Tesla stock has fallen 26% since its peak in September. But he took that to a new level in a remarkably blunt and contentious call with Wall Street analysts Wednesday after the automaker reported a record loss of more than $700 million last quarter. He wants to deflect, and mesmerize the crowd with science-fiction tales: Mars, Hyperloop, Semis, Tunnels. why change? The CEO said questions he was getting were "so dry" and told the conference-call operator to pivot instead to inquiries from a YouTube channel owner who said he was representing retail investors. The SUV crossover will likely be produced at a new factory that would be announced towards the end of this year.

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 auto. Tesla built just 2,400 of the sedans in the first six months of production, although the company says it is now building approximately that amount per week and targets a 5,000-per week figure in the next two months.

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