Analyst fires back after Elon Musk shut him down in Tesla earnings call
The drama is heating up after Tesla CEO Elon Musk called a bunch of analysts’ questions boring.
Well, this certainly isn’t boring: One of the analysts who asked about the electric car maker’s Model 3 reservations at last week’s unhinged earnings call wrote an open letter to Musk defending his “boneheaded” question. Musk had refused to answer it and moved along to several questions from Galileo Russell, who has a YouTube channel and is a retail investor.
RBC Capital Markets analyst Joseph Spak, who wrote the letter, said that he’s still all about Tesla, but, look, he’s supposed to ask questions: “My responsibility is to be well informed when I discuss Tesla’s stock with current and potential investors. A financial results call is an opportunity for Wall Street to re-calibrate our expectations.”
Of course, Musk already addressed his bizarre behavior last week, specifically explaining his reasoning for cutting off the eager analysts.
Reason RBC question about Model 3 demand is absurd is that Tesla has roughly half a million reservations, despite no advertising & no cars in showrooms. Even after reaching 5k/week production, it would take 2 years just to satisfy existing demand even if new sales dropped to 0.
— Elon Musk (@elonmusk) May 4, 2018
Spak used his “Dear Elon” letter as an opportunity to invite Musk onto a call to hash this out once and for all. He proposed they “talk extensively about all the amazing industry innovations you are driving and dispel any investor misconceptions you perceive.” The ball’s now in Musk’s court: “Name the time and the place and I will be there, along with every one of your major shareholders,” Spak wrote.
Spak might’ve been offended by Musk’s harsh treatment, but his unwavering confidence in Tesla and its Model 3 line persists. Last year he wrote a report about Tesla’s likely path to profitability, and he’s consistently held a “hold” position on the stock.