Tesla’s Musk uses seventh-grader language on earnings calls

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Elon Musk, chairman and chief executive officer of Tesla Motors

The language employed by Tesla’s Elon Musk when speaking on earnings calls is at the level of a 12-year-old, according to a report from CB Insights.

Stretching back to 2011, the research firm has carried out an algorithmic analysis of text harvested from 28 quarters’ worth of earnings calls from Tesla, Ford, General Motors (GM) and Daimler. As well as focusing on Musk, the study examined language employed by CEOs James Hackett, Mary Barra and Dieter Zetsche.

They analysis concluded that Tesla’s Musk and Ford’s Hackett spoke with language expected of a seventh-grader while Daimler’s Dieter Zetsche was compared to that of a ninth-grade student. GM’s Mary Barra came out top, talking to investors and analysts with language expected of a 10th grader.

A separate algorithm examined the use of jargon, where CEOs employed business phrases or terms that those outside the industry might fund hard to understand.

Employing the least esoteric phrasing was Daimler’s Zetsche, who addresses his the audience in his second language. Musk and Hackett were also found to be low on the use of jargon, while GM’s Barra employed the most.