Elon Musk says don’t buy volatile Tesla stock, investors listen

Elon Musk lost his composure on Wednesday during Tesla’s first-quarter earnings call, and now he’s scrambling to clean up the mess. “The 2 questioners I ignored on the Q1 call are sell-side analysts who represent a short seller thesis, not investors”, he said on Twitter, before going on to address his reasons for ignoring each.

Musk’s grand apology came after Twitter user David Brady told the 46-year-old that he should’ve “just blocked them in the queue” rather than shutting down the critical questions they asked of Tesla during a live conference call. It also reduced its capital expenditures projections for the year, to $3 billion from $3.4 billion.

Early rumours suggested the Model Y would be built with the same production architecture as the Model 3, but TechRadar says that Tesla has developed a new platform for the electric SUV. Tesla said another production pause is expected in the second quarter.

Tesla may still be ironing out the production glitches on the assembly line of its popular Model 3 saloon but that hasn’t stopped it from adding a new vehicle to its all-electric range.

“Prior to a planned shutdown in mid-April to further increase production, we produced more than 2,000 Model 3 vehicles for three straight weeks, and we hit 2,270 in the last of those weeks”, Tesla said in a shareholder letter late on Wednesday. Musk claims there’s no need for additional investment at this time but that’s assuming the company meets its expectations, which it has flubbed several times now with the Model 3.

Sacconaghi wrote in a note on Thursday that “we do worry that such theatrics will unnecessarily undermine investor confidence in Tesla’s outlook”.

Given a platform share with the Model 3 has now been confirmed, it’s extremely likely that drivetrains will be the same, too. “Achieving that will depend significantly on whether the company can produce 5,000 “Model 3s” a week”. “Now, no one believes that”, Ben Kallo, an analyst at Robert W. Baird & Co with a buy rating on Tesla shares, said of Musk on Bloomberg Television.

Albertine said Musk does not need to raise capital right away, but he may want to consider appointing a chief operating officer.

Elon Musk talked about serial electric Semi truck, which Tesla has already received about two thousand orders.

“Please ignore this thread unless you’re interested in a tedious discussion about Tesla stock”, Musk starts. On a spread basis, they were trading at 439 basis points above comparable Treasurys.

The company has raised capital each year since its initial public offering in 2010 and issued debt twice in 2017.

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.