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Tesla Plunges After a Conference Call

bloomberg.com

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Re: Tesla Plunges After a Conference Call

#21

Post by imdsm »

JumpCrisscross wrote: post #18
mephitix wrote: post #5

I was on this call. It was extremely cringey/embarrassing to hear Elon dismiss valid questions. At the same time, it was fantastic to see a young, smart, retail investor (Gali from Hyperchange) get to ask so many questions directly to the leadership team. I thought before the call that Gali would get to ask only one question, like the other analysts. He was able to ask almost 10! It was surreal. I was left feeling th…

"Sacconaghi pressed ahead with another query about Tesla lowering its 2018 capital expenditure projection to $3 billion, from $3.4 billion. Ahuja said the carmaker would spend less by simplifying its approach to automation and curtailing infrastructure outlays. 'And so where specifically will you be in terms of capital requirements?' Sacconaghi said. 'Excuse me. Next. Next,' Musk said to the call operator. 'Boring, b…

To be fair, he's not entirely wrong. I guess people just don't expect this type of response. But then, acting within the confines of normality isn't really the trait that may bring the dawn of a new era of humanity.

Interestingly though, markets are reaction to this response emotionally.

Re: Tesla Plunges After a Conference Call

#22

Post by JumpCrisscross »

ttul wrote: post #7

Tesla is clearly flying close to the sun, and Musk is not incorrect to suggest that investors who can't take that kind of risk should not be along for the ride; however, it probably would have been more prudent to hold back on that pronouncement, given that many investors seem to have taken the hint and exited the stock... Tesla is a giant confidence game - as are most high growth opportunities.

> Musk is not incorrect to suggest that investors who can't take that kind of risk should not be along for the ride

Risk is fine. Blind risk is not. Questions about cash position for a money-losing company with less cash on hand than it burned in the trailing 12 months are prudent.

Re: Tesla Plunges After a Conference Call

#23

Post by jsw97 »

uryga wrote: post #19
jsw97 wrote: post #12

This is apparently a common practice, although rarely this blatant. Paper: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2479542 Paper finds that "firms that 'cast' their conference calls by disproportionately calling on bullish analysts tend to underperform in the future."

Haven't read the paper, but isn't the causality the other way around? As in, troubled companies call on bullish analysts to try to keep up good appearances, but then underperform anyway because of their problems?

Yes, that's actually the causality they suggest in the paper.

Re: Tesla Plunges After a Conference Call

#24

Post by frgtpsswrdlame »

mephitix wrote: post #5

I was on this call. It was extremely cringey/embarrassing to hear Elon dismiss valid questions. At the same time, it was fantastic to see a young, smart, retail investor (Gali from Hyperchange) get to ask so many questions directly to the leadership team. I thought before the call that Gali would get to ask only one question, like the other analysts. He was able to ask almost 10! It was surreal. I was left feeling th…

Yeah but his questions weren't really that great. The two questions from analysts he skipped before throwing it to the youtube guy were tough questions asking about specific details that Elon obviously didn't want to answer. Youtube guys questions were softer which is why Elon stayed with him for so long. I have to say I think letting someone like Gali ask questions at all is pretty bad, it specifically degrades what these calls are for. It's basically a filibuster.

Re: Tesla Plunges After a Conference Call

#25

Post by Semirhage »

imdsm wrote: post #21
JumpCrisscross wrote: post #18

Earlier quoted context omitted.

"Sacconaghi pressed ahead with another query about Tesla lowering its 2018 capital expenditure projection to $3 billion, from $3.4 billion. Ahuja said the carmaker would spend less by simplifying its approach to automation and curtailing infrastructure outlays. 'And so where specifically will you be in terms of capital requirements?' Sacconaghi said. 'Excuse me. Next. Next,' Musk said to the call operator. 'Boring, b…

To be fair, he's not entirely wrong. I guess people just don't expect this type of response. But then, acting within the confines of normality isn't really the trait that may bring the dawn of a new era of humanity. Interestingly though, markets are reaction to this response emotionally.

But then, acting within the confines of normality isn't really the trait that may bring the dawn of a new era of humanity.

Truly, this sounds divorced from the reality of anything Elon Musk is involved in. He’s making electric cars, rockets, and solar panels, not fusion power or immortality pills. Let’s be realistic! I think it’s important to separate what he actually does from what you desperately hope he may someday do.

Re: Tesla Plunges After a Conference Call

#26

Post by JumpCrisscross »

imdsm wrote: post #21
JumpCrisscross wrote: post #18

Earlier quoted context omitted.

"Sacconaghi pressed ahead with another query about Tesla lowering its 2018 capital expenditure projection to $3 billion, from $3.4 billion. Ahuja said the carmaker would spend less by simplifying its approach to automation and curtailing infrastructure outlays. 'And so where specifically will you be in terms of capital requirements?' Sacconaghi said. 'Excuse me. Next. Next,' Musk said to the call operator. 'Boring, b…

To be fair, he's not entirely wrong. I guess people just don't expect this type of response. But then, acting within the confines of normality isn't really the trait that may bring the dawn of a new era of humanity. Interestingly though, markets are reaction to this response emotionally.

> markets are reaction to this response emotionally

I don't think so. The material takeaway is Tesla will need to raise new capital in 2018. The numbers implied it. The market previously guessed Musk had some genius plan to avoid it. On this call, the lack of such a plan became evident. Dilution and/or increased default risks/interest costs are being priced in.

Re: Tesla Plunges After a Conference Call

#27

Post by [deleted] »

uryga wrote: post #19
jsw97 wrote: post #12

This is apparently a common practice, although rarely this blatant. Paper: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2479542 Paper finds that "firms that 'cast' their conference calls by disproportionately calling on bullish analysts tend to underperform in the future."

Haven't read the paper, but isn't the causality the other way around? As in, troubled companies call on bullish analysts to try to keep up good appearances, but then underperform anyway because of their problems?

[deleted]

Re: Tesla Plunges After a Conference Call

#28

Post by danso »

imdsm wrote: post #21
JumpCrisscross wrote: post #18

Earlier quoted context omitted.

"Sacconaghi pressed ahead with another query about Tesla lowering its 2018 capital expenditure projection to $3 billion, from $3.4 billion. Ahuja said the carmaker would spend less by simplifying its approach to automation and curtailing infrastructure outlays. 'And so where specifically will you be in terms of capital requirements?' Sacconaghi said. 'Excuse me. Next. Next,' Musk said to the call operator. 'Boring, b…

To be fair, he's not entirely wrong. I guess people just don't expect this type of response. But then, acting within the confines of normality isn't really the trait that may bring the dawn of a new era of humanity. Interestingly though, markets are reaction to this response emotionally.

Er, why is asking for something fundamental to running a business (i.e. "How much money do you have/need?") a partly boring/boneheaded/uncool question?

Re: Tesla Plunges After a Conference Call

#29

Post by baxtr »

imdsm wrote: post #21
JumpCrisscross wrote: post #18

Earlier quoted context omitted.

"Sacconaghi pressed ahead with another query about Tesla lowering its 2018 capital expenditure projection to $3 billion, from $3.4 billion. Ahuja said the carmaker would spend less by simplifying its approach to automation and curtailing infrastructure outlays. 'And so where specifically will you be in terms of capital requirements?' Sacconaghi said. 'Excuse me. Next. Next,' Musk said to the call operator. 'Boring, b…

To be fair, he's not entirely wrong. I guess people just don't expect this type of response. But then, acting within the confines of normality isn't really the trait that may bring the dawn of a new era of humanity. Interestingly though, markets are reaction to this response emotionally.

Emotional responses on both sides then?
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