Market Overview

Munster To Musk: Apologize, Ignore The Shorts And Maybe Take A Break From Tweeting

Share:
Munster To Musk: Apologize, Ignore The Shorts And Maybe Take A Break From Tweeting
Related TSLA
Gordon Johnson: With 90-95% Conviction Rate, The DoJ's Tesla Investigation Is 'Concerning For All Those Long The Stock'
Stock Market Appears To Focus On US-China Tariff News As US, Canada Continue Talks
SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in ... (GuruFocus)

Elon Musk isn’t winning any friends with his recent, aggressive outbursts. He’s not winning Tesla Inc (NASDAQ: TSLA) capital either.

What To Know

“Over the last 6 months, there have been too many examples of concerning behavior that is shaking investor confidence,” Gene Munster, managing partner at Loup Ventures and Tesla permabull, said Tuesday afternoon in an open letter to Musk.

“In our view, your outburst at analysts on the March 2018 earnings call, your ongoing frustration with short sellers and the media, your June email exchange with the saboteur, and your confrontation on Twitter with cave diver Vern Unsworth each raised flags with investors.”

Musk apologized for his actions in an early morning tweet:

Why It's Important

The ultimate fear is that the CEO’s behavior detracts from Musk’s credentials, jeopardizes Street confidence and, subsequently, compromises capital for the cash-strapped Tesla.

“Your behavior is fueling an unhelpful perception of your leadership – thin-skinned and short-tempered,” Munster wrote.

With praise for Musk’s visionary leadership and reiterated support for Musk’s mission of sustainable energy, Munster urged Musk to apologize for flippantly accusing Unsworth of pedophilia, to refocus his message on product progress, and to a break from Twitter Inc (NYSE: TWTR) — Musk’s standard vehicle of destruction.

The last step is seen to protect Tesla’s immediate investor base and its prospective consumer base.

“His role is particularly important because Tesla, to date, doesn’t do advertising, so the potential consumer’s opinion of the company is being formulated by how he engages with Twitter, which is not healthy at this point,” Munster said in a Bloomberg TV interview.

What's Next

The Loup founder also advised ignoring short-sellers and the swarm of Tesla skeptics.

“During my time as an analyst I have observed that when companies aggressively engage with short sellers, they lose,” Munster wrote, adding on Bloomberg that such engagement is “always a red flag.”

Tesla shares had fallen 3.6 percent on the tweet about Unsworth but have since fully recovered. At time of publication, shares traded at a rate of $324.17.

Related Links:

Elon Musk Takes Aim At Media Again

How Tesla Analysts Reacted To Musk's 'Bonehead' Remarks: 'Most Unusual Call I Have Ever Experienced'

Image credit: Heisenberg Media, Flickr

Posted-In: Elon Musk Gene Munster Loup VenturesAnalyst Color Psychology Top Stories General Best of Benzinga

 

Related Articles (TSLA + TWTR)

View Comments and Join the Discussion!

EDM DJ 3LAU Launches A Blockchain Music Festival: 'Live Music Is A Collective Experience'

Earnings Season Off To Good, But Not Great, Start As Morgan Stanley Reports