The controversy over Elon Musk’s bizarre treatment of analysts on a Tesla (NASDAQ:TSLA) conference call this month where he dismissed their questions about gross margins as “boring” and “dry” shows little sign of abating.
Still smarting from being rebuffed, Joseph Spak, an RBC Capital analyst, has written a letter to Musk and invited him to talk extensively about "all the amazing industry innovations you are driving and dispel any investor misconceptions you perceive."
Obtained by TheFly.com, a business news site, the letter comes after Musk cut off Spak’s inquiry about demand for Model 3s and called his question absurd given that Tesla has roughly half a million reservations, despite its lack of advertising and not having cars in the showrooms.
In response to being insulted, Spak wrote in his open letter: “Name the time and the place and I will be there, along with every one of your major shareholders.”
Spak wrote that while he considers Tesla an “amazing company” with a “compelling” long-term opportunity and an “incredible” list of accomplishments, he has to hold the carmaker “accountable” for implementing a strategic vision that aligns with an ability to execute at scale.
READ: Tesla shares volatile on narrower-than-expected 1Q loss but concerns remain
In the letter, Spak also stressed that "a financial results call is an opportunity for Wall Street to recalibrate its expectations based on the information you provide so we can thoughtfully reflect on the financial outlook for your company.”
“Our questions collectively represent the concerns and interests of your current and potential shareholders,” he wrote. “Some of these questions can seem dry, boring or short-term focused, but hopefully you can appreciate that anyone looking to invest in Tesla’s future must first be comfortable with its present.”
This month, Tesla stated in a quarterly filing that it expects its total 2018 capital expenditures to fall slightly below US$3bln and that it may raise additional capital to fund the rapid growth of its business.
And the electric-car giant beat expectations with its first-quarter results, although concerns over its cash burn, huge debt pile and production issues remain.
Tesla reported a loss of US$3.35 in the opening three months of 2018 on revenue of US$3.41bln.