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Neil Cybart @neilcybart
, 5 tweets, 1 min read Read on Twitter
This latest Elon Musk vs. Wall Street episode is worrying. Elon Musk is wrong and he knows it. He went to Twitter today to answer the questions that he refused to answer on Tesla's earnings conference call.
Management teams determine who is able to ask a question on earnings conference calls. If Musk was so concerned about these two particular analysts who he claims represent the short Tesla thesis, why did he call on them?
This has the makings of being a PR move. Musk got bored by finance questions (not a fun subject for Tesla). Instead of just declining to answer the question or giving a non-answer, he threw a hissy fit and turned this into the latest battle of the Tesla vs. Wall Street war.
Musk doesn't seem to understand why Tesla is such a shorted stock. The buy side knows Tesla will need capital. They're making a bet that most of that capital will come in way of secondaries. They are shorting TSLA now with intention of buying shares back in future secondaries.
This has little to nothing to do with Tesla cars or Tesla technology. Most Wall Street investors and analysts say Tesla has a great product. Instead, the pessimism is found with Tesla's balance sheet. It's a capital issue. Musk doesn't like talking about that subject though.
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