Tesla Stock Dives After Bizarre Earnings Call

Musk had a terse exchange during a media call			

			Tesla Model 3			

			Tesla has reported record losses for the first three months of 2018

Analysts expect a loss of $3.54 per share, up from a loss of $1.33 per share in the first quarter of 2017. Margins did drop from 27.4% to 19.7% which should be expected as the lower cost, and lower margin Model 3 starts to weigh in on the product mix. Then in 2013, as Model S production hit its stride, Tesla's cash flow was slightly positive for three out of four quarters in 2013.

"I think the Model Y is going to be a manufacturing revolution".

And Musk has another reason for optimism: he has gone through all of this before.

Elon Musk's usually chummy relations with Wall Street just took a troubling turn.

"The morning after the Roadster was announced, I put a deposit down", said Bruce Sidlinger, a 60-year-old aerospace engineer who resides in Flagstaff, Arizona. He said a "fluff"-material mat on top of the Model 3's battery pack should have been attached by a human, not a robot, as was done initially in its production". Capital spending will come in below $3 billion this year, Tesla said.

Prior to a planned shutdown of production to make the system more efficient, Tesla managed to reach 2,270 vehicles a week.

It's a decision that has frustrated some would-be Model 3 owners, who have found themselves without the typical lease option when it comes to actually converting their reservation into a full order.

Delayed Model 3 production also comes as a slew of competitors bring new electric vehicle models to market.

Musk had a terse exchange during a media call			

			Tesla Model 3			

			Tesla has reported record losses for the first three months of 2018
Musk had a terse exchange during a media call Tesla Model 3 Tesla has reported record losses for the first three months of 2018

Morgan Stanley analyst Adam Jonas said in a note the "unusual" conference call Wednesday that "didn't go very well" could jeopardize the company's relationship with the capital markets needed to fund future plans. What percentage of Model 3s delivered so far have already gone in to the shop? "Sorry, these questions are so tiresome".

During the call, Musk also elaborated on the Model 3's trend towards being the dominant midsize luxury sedan in terms of sales in the United States, besting competitors like the BMW 3-Series and the Mercedes-Benz C-Class.

Even $100 per kWh at the pack level, which Tesla previously said it didn't expect to hit before 2020, it would mean $80,000 to $100,000.

"Although the current leadership structure, in which the positions of Chairman and CEO are held by one person, could provide an effective leadership for Tesla at the early stage, now in this much more highly competitive and rapidly changing technology industry, it is more and more hard to oversee Tesla's business and senior management (especially to minimize any potential conflicts) that may result from combining the positions of CEO and Chairman".

But Model 3 production still isn't near the level of 5,000 per week that Musk promised past year.

Tesla posted a record $US709.6 million net loss in the first quarter, which amounts to a loss of $US4.19 per share.

Early last month, Musk admitted that the production snags on the Model 3 assembly line are partly the result of "excessive automation" at the company's Fremont, Calif., factory. Avestar Capital LLC purchased a new position in Tesla in the fourth quarter valued at $144,000.

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