We all recall the last time Mr. Musk addressed the analysts who follow Tesla, his electric car company, he was very angry and rude. “Boring, boneheaded questions are not cool,” he told the analysts. “These questions are so dry. They’re killing me,” Mr. Musk complained.
That outburst led to a selloff for Tesla’s shares.
Come Wednesday he gets another chance, when Mr. Musk must once again explain to investors what is going on up in Fremont California..
Gene Munster, managing partner of venture capital firm Loup Ventures, a long-time fan of Tesla and Mr. Musk concedes another angry performance from Elon will be “a disaster”.
“Investors have made their feelings known. If they ignore that, it would be a sign that he has gone off the rails,” he said.
And in the time since they last talked, Mr. Musk has given us lots of evidence that he is steering the company and his waning reputation into a multi-car pile-up of scandals that has left many trying to decide whether to walk away.
The low point came earlier this month when Mr. Musk baselessly accused British diver Vern Unsworth of being a “pedo” after Mr. Unsworth had the temerity to criticize Mr. Musk’s offer to provide a mini-submarine to help rescue the boys trapped in a Thai cave. Mr. Unsworth called it “a PR stunt with absolutely no chance of working”.
Mr. Musk has also used Twitter, where he has 22-M followers, to go after journalists.
He has also attacked short sellers of his stock for what he sees as a concerted attempt to undermine the company.
Notably, Tesla has faced a series of investigations into crashes some fatal.
Mr. Musk has been in a public spat with a former employee who says he blew the whistleon dangerous work conditions. Mr. Musk calls him a “saboteur”.
“Elon Musk is a total fraud,” and Tesla is a company “best known for blowing deadlines and consistently falling short on production,” wrote the New York Post.
“Is Elon Musk too volatile to run Tesla and SpaceX?” Fortune asked last week.
Tesla’s “Rock Star CEO” is “starting to lose his groupies,” according to the Street.
He’s “a terrible manager,”according to Inc.
Jim Chanos, an investor who has made a fortune betting on company collapses, believes Tesla is “heading for a brick wall”.
It really should not be this way.
Here’s a self-made billionaire who wants to make the world drive EVs, fund the next space race and colonize Mars.
Robert Downey Jr used him as the model for Tony Stark, Iron Man’s alter ego. He is dating Grimes and named one of his companies Boring.
There’s so much to like.
The Big Q: Why is Elon Musk a Jerk?
The Big A: Stress.
Since Tesla’s IPO 8 years ago, it has has just 2 profitable Quarters. And Tesla is burning cash very fast. The company lost about $2-B last year and at the end of March, Tesla had about $2.7-B in cash then.
Last year we reported that the company was burning $500,000/hour.
No question the company is in trouble, a combative performance from Musk Wednesday well then…
Jeremy Acevedo, manager of industry analysis at Edmunds, says that Tesla is staring at the end of the runway and needs to start making a profit.
“Tesla is struggling to transition from a custom, 1-off car manufacturer to a mass producer,” he says. “…it has accomplished a lot.”
The company brought new energy and vision to electric cars. Tesla made them “sexy,” he says. Its latest vehicle, the mass-market M3 is aimed at making a car to compete with Ford (NYSE:F) and General Motors (NYSE:GM).
There have been significant issues, as Mr. Musk has conceded. “But his competitors have been doing this for a Century,” says Mr. Acevedo. “Predictably, for Tesla there have been hiccups.
In May 2016, Musk estimated that the company would make 100,000 to 200,000 M3s during 2-H of Y 2017. Tesla made just 1,810 M3s in 2-H of Y 2017.
Production is ramping up.
In July the company announced it had finally hit its numbers, making 5,031 M3s during the final week of June and 28,578 during Q-2, more than it had made in the previous 3 Quarters combined.
The cost Tesla to get to that tiny pace and whether even that pace is sustainable will be analysts’ Key questions this Wednesday.
There is cost when living in the fast lane
|NASDAQ:TSLA||297.18||27 July 2018||-9.47||307.25||307.69||295.34||5,701,100|
|HeffX-LTN Analysis for TESLA:||Overall||Short||Intermediate||Long|
|Bearish (-0.37)||Very Bearish (-0.65)||Bearish (-0.31)||Neutral (-0.14)|
Have a terrific week