As electric vehicles (EVs) begin to take hold around the world, Tesla continues to push its business forward into the hands of consumers.
In an email to employees Tuesday, Tesla CEO Elon Musk warned employees to control costs to manage its quarterly profits, or else the company’s “stocks would be crushed like a souffle under a sledgehammer,” as reported by CNBC.
In the email, Musk wrote, “Investors are giving us a lot of credit for future profitability but if, at any point, they conclude that’s not going to happen, our stock will immediately get crushed like a souffle under a sledgehammer!”
“Elon Musk warns employees Tesla's stock could 'get crushed like a soufflé under a sledgehammer'” pic.twitter.com/2OVvCj6omL
— ChartSmart | Trading The Markets (@chartsmart1) December 2, 2020
In spite of the email, Tesla is set to join the S&P 500 later this month and has been trading at several high points throughout the year. The company also has factories under construction in Austin, Texas and outside of Berlin, Germany. In short, 2020 has been a big year for the EV company.
At the time of writing, Tesla’s shares are selling for $567.93, down 2.91% from yesterday’s market close. Below you can read Musk’s full email to Tesla employees, courtesy of CNBC:
From: Elon Musk
To: Everybody
Subj. Costs are extremely important!
Date: Dec. 1, 2020 [time redacted]
At a time like this, when our stock is reaching new heights, it may seem as though spending carefully is not as important. This is definitely not true!
When looking at our actual profitability, it is very low around 1% for the past year. Investors are giving us a lot of credit for future profitability but if, at any point, they conclude that’s not going to happen, our stock will immediately get crushed like a souffle under a sledgehammer!
Much more important, in order to make our cars affordable, we have to get smarter about how we spend money. This is a tough Game of Pennies, requiring thousands of good ideas to improve part cost, a factory process, or simplify the design while increasing quality and capabilities. A great idea would be one that saves $5, but the vast majority are $0.50 here or $0.20 there.
In order to make the electric revolution happen, we must make electric cars, stationary batteries and solar affordable to all.
Thanks and great working with you as always,
Elon
