Tesla drops in premarket after Musk lets loose on call

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The stock responded with a 2.2% increase before going into the company conference call.

Of particular scorn to Musk were the two analysts he cut off on Tesla's quarterly earnings call on Wednesday - one from Bernstein, and the other from RBC Capital Markets.

As NPR's Sonari Glinton reports, investors are getting nervous about the production delays in Tesla's most affordable model, and the company's stock has been volatile.

Elon Musk's derisive dismissal of analysts' questions is proving expensive.

While CEOs can be irreverent on Twitter or eccentric in how they talk to some groups, Wall Street expects to see "rational, dispassionate demeanor" in an earnings call, said Charles Elson, the director of a corporate governance center at the University of Delaware.

Adam Michael Jonas - Morgan Stanley & Co. And once they were on the call", Musk admitted, "I should have answered their questions live.

Thanks, Tal. I can't wait to hear the question.

Tesla CEO Elon Musk is known for being outspoken and unscripted.

Yeah, you may not need to, but do you want to?

Antonio M. Sacconaghi - Sanford C. Bernstein & Co. Musk also noted that there are "really big numbers" involved.

You should not be focused on short-term things, you should be focused on long-term things. They might have even been able to stomach the US$8.3 million that Telsa Inc. burns through each day. I couldn't care less. "I don't think that's a good message in any relationship". (01:11:29) That's it.

But beyond that, those tweets amount to him calling two analysts "absurd boneheads" (collectively) in the course of a pseudo-apology, which reminds me a bit of Ricky Bobby contending that as long as you preface something with the phrase "with all due respect", what comes out of your mouth next doesn't matter.

"Please ignore this thread unless you're interested in a tedious discussion about Tesla stock", Musk starts.

The bottom line is that, if the price drop is simply an emotional response, the stock price should recover soon. Perhaps by the time Tesla needs more money, Musk's antics will be forgotten, or at least accepted as Elon being Elon. On Thursday, the company's shares ended down 5.5%, trading at $284.45. Tesla's negative free cash flow was year $1.127 billion which was worse than estimated cash burn rate of $978.

After the conference call cutoffs, Musk, as he has in the past, showed humility and introspection.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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