Elon Musk is known for his outspoken views on a range of subjects, but his candour appears to have cost Tesla $1.8 billion (£1.3 bn) overnight.
That’s the total value wiped off the electric vehicle company’s shares, seemingly in response to the CEO’s rude attitude during a quarterly earnings call.
The billionaire branded one industry analyst a ‘boring bonehead’ during the bizarre session, saying another’s ‘questions are so dry they are killing me’.
His lack of respect for the participants looks to have led to a five per cent nosedive in the business’ stock after trading closed yesterday.
Elon Musk is known for his outspoken views on a range of subjects, but his candour appears to have cost Tesla $1.8 billion (£1.3 bn) overnight. That’s the total value wiped off the company’s shares, in response to the CEO’s rude attitude during a quarterly earnings call (file photo)
The awkward exchange was just one of a number of unusual moments that took place during the teleconference call, held by the South African born entrepreneur.
His ‘bonehead’ comments were in response to money management firm Bernstein’s senior analyst Toni Sacconaghi, who questioned the profitability of the upcoming Tesla 3.
Musk said: ‘Excuse me. Next. Boring, bonehead questions are not cool. Next?’
When Joseph Spak, an analyst from RBC Capital Markets posed a question about the Model 3, Musk reportedly paused for 15 seconds, before adding: ‘These questions are so dry. They’re killing me.’
He then gave the floor to Galileo Russell, host of YouTube channnel HyperChange TV, which has around 9,300 subscribers.
Mr Russel asked a series of questions of Musk and other senior Tesla executives, which lasted 20 minutes, before Musk thanked him for the ‘great questions.’
During the call Musk, who is also CEO of aerospace firm Spac X and brain augmentation startup Neuralink, admonished the press for its handling of crashes involving Teslas on autopilot mode.
According to a transcript of the call, Musk added: ‘It’s really incredibly irresponsible of any journalists with integrity to write an article that would lead people to believe that autonomy is less safe.
‘Because people might actually turn it off, and then die. So, anyway, I’m very upset by this.’
The billionaire branded one industry analyst a ‘boring bonehead’ during the bizarre session, leading to a five per cent nosedive in the business’ stock. The awkward exchange was just one of a number of unusual moments that took place during the teleconference call
The financial impact of Musk’s attitude is particularly noticeable, given that Tesla had just posted its biggest-ever quarterly loss with little reaction from markets.
Tesla reported a record loss of $709.6 million (£522m), or $4.19 (£3) per share, for the first quarter ended March 31, compared with a loss of $330.3 million (£243m), or $2.04 (£1.50) per share, a year earlier.
Excluding items, Tesla had a loss of $3.35 (£2.45) per share. Analysts had expected a loss of $3.58 (£2.63) per share.
The company said it ended the quarter with $3.2 billion (£2.3bn) in cash after spending $655.7 million (£483m) in quarterly capital expenses.
Tesla added that it is standing by its production targets for the Model 3, assuring investors that its key new vehicle was on track, after months of what Musk has called ‘production hell’
A lack of Model 3 revenue has exacerbated Tesla’s cash burn as the company continues to spend on its assembly line and prepares for new investments on multiple projects in the pipeline, such as the Model Y crossover and its Gigafactory.
The Model Y is just one of many projects in the pipeline for Tesla, which also launched a Tesla Semi and a new Roadster in recent months.
Musk did say that the firm is standing by its production targets for the Model, assuring investors that its key new vehicle was on track.
The company also sought to downplay increased wariness over its finances, saying it expected to achieve net profit in both its third and fourth quarters.
Over the last few months, the Model 3 has been caught up in what Musk has referred to as ‘production hell,’ with numerous delays that have forced the firm to adjust its initial goals.
The company has now warned it will shut down production for about ten days during the second quarter of 2018, including its most recent stoppage in April.
That temporary shutdown underscores how Tesla’s assembly line still needs work to produce its goal of 5,000 Model 3 vehicles per week by the end of June.
‘We have largely overcome this bottleneck,’ wrote company in a release, referring to the manufacturing issues that have plagued the Model 3 battery module line at the Nevada Gigafactory.
Tesla said it produced 2,270 Model 3s per week in the last week of April, up from 2,250 in the second week of the month.
It said the net reservations for the Model 3, including configured orders not yet delivered, exceeded 450,000 at the end of the first quarter.
Tesla built only 2,425 Model 3s in its fourth quarter.