Elon Musk’s Performance on Tesla’s Earnings Call Criticized
Financial analyst Kevin Paffrath voices concerns about Elon Musk’s behavior during Tesla’s recent earnings call and highlights the need for a proactive approach. The call, which addressed Tesla’s third-quarter results, was considered disappointing by analysts.
Musk’s ‘Childish’ Reaction
Paffrath characterizes Musk’s demeanor during the call as immature, stating that he acted like “a little baby” and was almost in tears. Instead of tackling the company’s challenges with a plan, Musk appeared to blame external economic factors.
Blaming Economic Factors
Musk attributed some of Tesla’s struggles to economic conditions, particularly the impact of rising interest rates on the gigafactory in Mexico. He expressed concerns that higher interest rates make it harder for people to afford Tesla vehicles, affecting monthly car loan payments.
An Alternate Perspective
Paffrath criticizes Musk’s approach and suggests potential alternatives. He urges Musk to negotiate with the Mexican government for a better deal regarding the gigafactory or target higher-income markets. The emphasis is on providing a clear path forward rather than dwelling on economic challenges.
Mixed Financial Results
Tesla’s third-quarter financial results fell below analysts’ expectations, with both earnings per share and revenue coming in lower than anticipated. The company’s stock price experienced a 15% decline in the past week but has seen a 96% increase throughout the year.
Wide Critique of Musk’s Performance
Paffrath’s critique is not an isolated opinion. Other analysts have also expressed concerns about Musk’s performance during the earnings call. Some have labeled it as a “mini disaster,” with Musk being overly cautious about high interest rates and tempering expectations regarding the Cybertruck.
Tesla has yet to respond to these criticisms.