Tesla’s third-quarter earnings call did not go as expected, with CEO Elon Musk receiving criticism from financial analyst Kevin Paffrath. Paffrath described Musk’s behavior during the call as “terrible” and accused him of blaming economic factors instead of coming up with a plan for the company’s struggles. Paffrath specifically pointed to Musk’s comments on Tesla’s gigafactory in Mexico, suggesting that the CEO should negotiate a better deal or advertise to higher-income areas. Paffrath emphasized the need for a clear path forward and criticized Musk for not providing one.
Tesla reported weaker-than-expected third-quarter results, with earnings per share and revenue falling short of analysts’ estimates. As a result, the company’s shares fell 15% in the past week, although they are still up 96% for the year. Paffrath’s criticism is not unique, as other analysts, such as Dan Ives from Wedbush Securities, also characterized Musk’s performance on the call as a “mini disaster.” Musk focused on high interest rates and tempered expectations around the Cybertruck during the call.
Overall, Paffrath’s remarks highlight his disappointment with Musk’s handling of Tesla’s earnings call. He believes that instead of blaming external factors, Musk should come up with a plan and provide a clear path forward for the company. The underwhelming third-quarter results and subsequent stock decline further support the criticism against Musk’s performance during the call.
