Elon Musk’s behavior during Tesla’s analyst conference call last week was extraordinary, by almost any measure. A year ago, and then again in July 2017, I wrote about Tesla’s stock being overvalued, Musk’s persistent tendency to provide overly rosy forecasts, and the overestimation by sell side analysts of Tesla’s free cash flows. First, Sacconaghi asked about the guidance Tesla was providing about lower capital expenditures this year: he wanted to know what Tesla was reducing. Second, Sacconaghi asked for a comment about Tesla’s capital requirements, what finance textbooks call external financing required. However, he also tweeted that the analysts whose questions he dismissed were from firms who were shorting Tesla’s stock.

Source: Forbes May 06, 2018 14:48 UTC