Hedge fund heaps criticism on Tesla after Musk's conference call

Thor electric semi-truck

ACT Expo 2018A Thor electric semi-truck

Tesla Chief Executive Elon Musk on Wednesday raised eyebrows by cutting off analysts' questions about capital requirements after the company reported a record loss for the first quarter.

Shares fell quickly in after-hours trading, and analysts began writing that Musk shouldn't bite the hands that feed his company's enormous cash needs because soon he may need more.

Explaining his decision in a string of tweets - which Mr Musk prefaced with a warning to "ignore unless you're interested in a tedious discussion about Tesla stock" - he said that the company was the most shorted stock on the market.

US Foreign-Trade Deficit Narrowed in March
The United States ran a $20.5 billion surplus in the trade of services such as education and banking. Economists polled by Reuters had forecast the trade gap narrowing to $50.0 billion in March.

Tesla has fallen far short of Musk's promises to ramp up Model 3 production, which the company has said is key to turning a profit.

Sacconaghi has a US$265 price target on the stock, while Spak sees the shares falling to US$280. Musk fired, "Excuse me".

His actions had immediate consequences. "This is a financial analyst call; this is not a TED talk", Sacconaghi told CNBC.

1st death reported from E. coli outbreak linked to romaine lettuce
Kentucky, Massachusetts and Utah are the latest states to report illnesses bringing the total number of states impacted to 25. Numerous people sickened across the country consumed chopped lettuce that had been sold in bagged form to restaurants.

"One of the common misimpressions is that when there is, say, a serious accident on Autopilot, people-or some of the articles-for some reason think that it's because the driver thought the auto was fully autonomous and it wasn't, and we somehow misled them into thinking it was fully autonomous". A "vast majority" of the company's manufacturing process is already automated, but Musk seems to be planning to take it to a whole new level.

Sacconaghi has a price target of $265 on Tesla's stock and Spak lowered his target to $280 from $305 on Thursday. The first-quarter loss hit almost $710 million with a cash burn of $745 million.

"The "dry" questions were not asked by investors, but rather by two sell-side analysts who were trying to justify their Tesla short thesis". "Tesla has roughly half a million reservations, despite no advertising & no cars in showrooms". He stated that even after the company reaches 5,000 vehicles in production per week, and even if new sales dropped all the way to zero, it would take two years to satisfy existing demand. Tesla built just 2,400 of the sedans in the first six months of production, although the company says it is now building approximately that amount per week and targets a 5,000-per week figure in the next two months. Actually, Musk responded to three separate questions from Tamberrino about the Model 3 and Model Y. If Tesla does run short of cash, big institutional investors such as Fidelity likely will come to the rescue, but that may cause a change at the top, Ramsey said.

Adobe Systems Incorporated (ADBE) Forms Double Top Pattern Trading at $222.95
The software company reported $1.55 earnings per share for the quarter, topping analysts' consensus estimates of $1.44 by $0.11. King Luther Mgmt, a Texas-based fund reported 1.42M shs. 53,899 are owned by State Of Alaska Department Of Revenue.

Latest News