Musk told analysts on Tesla’s third-quarter earnings call that the company is only trying to spend money and not waste it.
As noted in the email, Elon Musk is concerned that Tesla’s stock may plunge despite recent gains. To avoid losses and maintain profitable quarterly reports, the CEO said the electric vehicle (EV) company needs to control spending.
In the email obtained by CNBC, 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!”
Why Tesla CEO Warns Employees about Stock Performance
Over the past few months, Tesla has ventured into the construction of new factories in different jurisdictions. In 2020, Tesla has spent on building factories near Austin, Texas, and near Berlin.
Also, the EV company restarted its California factory during the stay-home period. At the time, Musk posted that production has resumed at the factory against Alameda County rules. He also added that he was ready to be arrested in place of anyone.
As CNBC stated, Musk told analysts on Tesla’s third-quarter earnings call that the company is only trying to spend money and not waste it.
Tesla (TSLA) Stock
Tesla is currently trading at $582.93, a 2.48% increase over its previous close of $568.83. The electric vehicle company has been recording gains and hitting new highs despite the ongoing epidemic that affected several businesses. Over the last twelve months, Tesla’s stock jumped, growing by 754.01%. The company also gained 579.87% since the beginning of 2020 and added more than 27% over the last three months. In addition, TSLA has climbed 35.12% in the last one month. However, Tesla’s stock has dropped 0.90% in the last five days.
According to a report by Electrek, Musk has also been working on producing more affordable Tesla vehicles. During the company’s Battery Day event in September, the automaker unveiled an incoming electric vehicle worth $25,000. The company also added that the vehicle would be powered by Tesla’s new battery cell.
In the email sent to employees, Musk mentioned that the company needs to “get smarter” with expenses to deliver more affordable cars. As stated in the Electrek report, the CEO said more on the company’s cost-saving efforts:
“This is a tough Game of Pennies – requiring thousands of good ideas to improve part cost, a factory process or simply the design, while increasing quality and capabilities. A great idea would be on that saves $5, but the vast majority are 5cents here or 20 cents there.”
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Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.