“Elon Musk, the high profile CEO of electric car start-up Tesla Motors, has been defending the company and its Model S from criticism as of late.
But he couldn’t overcome criticism from investors Thursday who drove the stock sharply lower after the company posted a bigger than expected loss.
Shares of Tesla (TSLA) tumbled nearly 10% in afternoon trading, its biggest one-day drop in more than a year, after the company announced a $75 million loss on Wednesday night.
During a conference call on Wednesday, Musk tried to balance the earnings miss with some good news, saying Tesla had increased production and decreased capital expenditures which, he said, should allow it to generate a slight profit for the current quarter.
“Due to an enormous amount of hard work by a really dedicated group of people at Tesla, we’re going to be profitable, and I think that’s a pretty big deal,” Musk said.
But comments about profit margins spooked some investors….”
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