— This is the script of CNBC's news report for China's CCTV on May 4, Friday.
The wall behind me shows a weekly trend of Tesla's stock, it tells the Wall Street's reaction to Tesla. Actually, the earnings report is good and even boosting Tesla's stock rise 2% in the after-hours trading, however, that didn't last for a long time, and shares in Tesla took nosedive. Musk gave bizarre earnings call, causing Tesla's stock price once fell more than 8% and shed 5.55%.
Musk interrupted analysts for many times and was very inpatient on the 3 hours earnings call. He not only declined answering the question about gross profit rate of Model3, but also dismissed that question as boring. Musk even cut off the analysts' call.
[Sacconaghi] "And, so where specifically would you be in terms of (Musk: Excuse me) in terms of capital requirement?"
[Musk] "Next, boring bonehead question are not cool! Next! Sorry these questions are so dry, they're killing me"
This kind of attitude really got on the wrong side of Wall Street. At least 3 security brokers cut the price target, "Tesla's call was the most unusual I have experienced in 20 years" Morgan Stanley said.
Actually, the questions that Musk rejected to answer are crucial. Musk said, if investors don't want to experience turbulence, they shouldn't buy Tesla's stock, because Tesla is for long-term investment. The path of Model3 affects Tesla's cash flow and financial credit, and the production data is critical to the bull case of $561 for the stock or bear case of $175. Some people think that the huge operation pressure drives Musk be impatience to analysts.
But some people still back Musk, for example, Jim Cramer, the famous host of CNBC, said that this was the best call he has heard in a long time, Jim thinks that Musk's correct attitude to the people who hold Tesla's stock for long-term and ignorance to the short-term investors is "Cool"
Some analysts think that Musk just want to show his confidence to cash flow, when Wall Street and short-sellers believe Tesla need financing and may be going bankrupt. But markets have different understanding to this unusual call. Whatever the true reason is, the production of Model3 will definitely affects Tesla's stock price. The production of Model3 in the last week of March was merely 2020, below the target of 2500 per week.
Tesla plans to reach the targets that produce 5000 Model3 per week in the following 2 months, which is a bold plan. Meanwhile, important tip is that Musk said the information about the second factory that will be built in China. The super factories in the future will produce both battery and car. It would relief Tesla's pressure and be positive to Tesla's production, once the super factory is established in China.