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Elon Musk Apologizes for Dismissing Finance Questions; Tesla Stocks Fall Anyway

05 May 2018

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

Musk is now on damage control, attempting to justify his unusual behavior in an unfiltered tweetstorm.

When asked during a sometimes-contentious conference call with analysts Wednesday whether he would want to raise additional cash even if Tesla doesn't need it, he insisted he wouldn't do so.

Days after the Tesla boss shocked Wall Street by completely dismissing critical questions from two analysts as "boring", Musk said on Friday it was "foolish of me" to ignore the queries.

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To a question about the Tesla Model 3, which has had a slower-than-expected rollout, Musk replied: "These questions are so dry".

After Musk's brush-offs during the conference call, Tesla shares fell in after-hours trading Wednesday and closed down more than 5% Thursday at $284.45 a share.

We'll be updating this story as Musk keeps tweeting.

Also, I guess what I would suggest (and I speak from extensive experience here), is that Elon should remember that no matter how famous he is, most people don't care about this debacle. "Please sell our stock and don't buy it".

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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. It was down more than 6 percent as of this morning.

Musk appeared to have second thoughts about the wisdom of brushing off analysts whose conclusions he challenges. But as a public company, Tesla has an obligation to investors and it obviously benefits the company to keep them happy. So they write inflammatory headlines that are fundamentally misleading to the readers.

Tesla shares initially rose after the company reported a $567.9 million loss, in line with financial analysts' forecasts though higher than the previous quarter and above the same period a year ago. Tesla will undergo "a sort of reorganization, restructuring" this month to help achieve that goal, he said.

Later, he said moats are lame, that his company "is a leaky sieve of information" and that Tesla's pickup is going to be great: "We have way more cool things than we know what to do". "It's pretty insane. We've got barnacles on barnacles".

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Elon Musk Apologizes for Dismissing Finance Questions; Tesla Stocks Fall Anyway