Tesla Inc chief Elon Musk’s refusal to answer “boring” Wall Street questions about the electric car maker’s financial condition sent shares down as much as 7 percent on Thursday and spurred concerns about its ability to raise money in the future.
Tesla just burned over $1 billion in three months. How long can a company survive with that kind of negative cash flow? Who is going to give capital to Tesla after this response?
In a conference call on Wednesday, Musk refused to answer questions from analysts on Tesla’s capital requirements, saying “boring questions are not cool.”
Tesla got tremendous attention because of the crazy acceleration of its cars and the high-tech wizardry inherent in its various products. But now, the bigger problem for Elon Musk is competition ... rich German competition:
VW, BMW and Mercedes-maker Daimler have increased their investment in electromobility, aiming to produce e-cars at a fast clip reliably and find the customers willing to buy them. The German automotive industry invested €4.7 billion between 2016 and 2017 in adapting its factories, more than all the other big competitors together, according to an analysis by consultancy EY.