Tesla: Elon Musk Issues a Sincere and Impactful Apology During Earnings Call

Three months after Tesla Inc. (TSLA) experienced a significant stock drop due to CEO Elon Musk's unusual analyst call, the electric vehicle manufacturer’s shares are now rising sharply following a heartfelt apology from its prominent leader. In the recent Q2 earnings call, Musk also moderated the company’s outlook, forecasting profitability by the end of the next quarter. (See also: Street Bulls Predict Tesla to Reach $400 and Beyond)

Electric Vehicle Manufacturer’s Stock Surges Nearly 10% Post Earnings

Back in May, Musk vowed to deliver the “short burn of the century,” criticizing analysts during an earnings call for what he perceived as attempts to justify bearish bets on Tesla stock. He labeled some analyst questions as “boneheaded.” When Bernstein analyst Toni Sacconaghi inquired about Tesla’s capital needs, Musk interrupted, dismissing “boring” questions as “not cool.”

This time, Musk adopted a more conciliatory tone. “I want to sincerely apologize for my rudeness during the previous call. There is truly no excuse for bad manners, and I broke my own rule there. Although I was running on little sleep—120-hour workweeks—this does not justify my behavior. I apologize for not being polite on the earlier call,” Musk expressed.

What Analysts Are Calling the 'Most Valuable Apology Ever'

Addressing RBC’s Joseph Spak, whose questions he had previously described as “dry” and said “they’re killing me,” Musk added, “I also want to apologize for being impolite to you on the last call. That was wrong, and I hope you accept my apology.”

In a client note released Wednesday, KeyBanc Capital Markets described Musk’s apology as “perhaps the most valuable apology of all time.”

“Tesla’s forward-looking commentary was largely better than expected, and the CEO made efforts to rebuild investor trust and credibility, showing he can be a positive force for the investment story rather than a negative,” noted KeyBanc analyst Brad Erickson.

As of Thursday morning, Tesla shares have risen 9.6% to $329.68, marking a 5.9% gain year-to-date (YTD), outperforming the S&P 500’s 5.3% increase over the same timeframe. (See also: Musk’s Promise of the 'Short Burn of the Century')

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