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I read through the transcript of the call [1], and it was not as bad as the headlines make it out to be. But unless they start delivering larger numbers of Mode
by this_user 8y ago
I read through the transcript of the call [1], and it was not as bad as the headlines make it out to be. But unless they start delivering larger numbers of Model 3s, they will have to raise additional capital later this year or face running out of money. Tesla is still basically a startup and they were hours away from bankruptcy once before in 2008, so this is not entirely impossible. Musk claims they will be cash flow positive in Q3, but so far they have missed Model 3 production targets for the last three quarters, although they got close at the end of Q1.
Under these circumstances, it is not unreasonable for investors to hold you accountable and inquire about the financial situation and plans. Musk's conduct was unprofessional and he could have handled those questions more gracefully instead of dismissing them and berating the people who had been asking them. This kind of behaviour does not exactly inspire confidence, and burning your bridges with the very banks that you might need to raise money later on was certainly not his smartest move.
[1] https://seekingalpha.com/article/4169027-tesla-tsla-q1-2018-results-earnings-call-transcript https://seekingalpha.com/article/4169027-tesla-tsla-q1-2018-...