Elon Musk cuts off analysts as Tesla posts record $710m loss

Investors left frustrated as billionaire
dismisses queries about company’s finances

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The South African-born billionaire has had an “usually chummy”
relationship with analysts until now, says Bloomberg, but turned hostile when queried
about the electric car firm’s financial situation. Hours
earlier Tesla had posted a record loss of $710m (£522m) for
the first quarter of 2018, The Guardian reports.

Asked by RBC Capital Markets analyst Joe Spark about how
many Model 3 pre-order customers had began finalising their
purchase, Musk replied: “Sorry. These questions are so dry. They’re
killing me.”

He then took questions from Tesla enthusiast Gali Russell, who
runs a YouTube channel called HyperChange that is dedicated to
electric cars and consumer tech. 

Musk’s behaviour was condemned by some
“frustrated” investors and analysts, who are “seeking
clarity” on the company’s “high cash-burn rate” and the missed
manufacturing deadlines for the Model 3, says CNBC.

Analyst Rebecca Lindland, from vehicle valuation firm
Kelley Blue Book, told the news site that the tech tycoon needs to
“grow up” and “get on track”.

“You have to take analyst questions, adult analyst
questions, not fanboys, not retail analysts”, she
said. 

Shares in the electric car company fell by 5% following the
conference call, resulting in a loss of $2bn (£1.5bn) in market
capitalisation. 

Musk insists that Tesla will turn a profit in the second
half of this year, and says the company is on course to reach its
manufacturing target of 5,000 Model 3s a week by the end of
June.