Elon Musk to Tesla Employees: We have to control costs!

Elon Musk to Tesla Employees: We have to control costs! Tesla CEO Elon Musk sent an email on Tuesday warning employees, said, “we have to control costs” to maintain the company's quarterly profit streak. “Investors give us a lot of credit for the profitability we will have in the future, but if they come to the conclusion that this will not happen at any point, our stock will be instantly crushed like a souffle under a sledgehammer!”   Tesla shares continue to trade at all-time highs and will join the S&P 500 later this month. Although Tesla's shares were traded at an all-time high before the company was included in the S&P 500, CEO Elon Musk sent an email on Tuesday warning employees that they should control their spending to maintain quarterly profits. Tesla has begun rolling up its sleeves this year to build a new factory near Texas Austin and Berlin. The company also started renovating its paint facilities, part of the US vehicle assembly plant in Fremont, California. Electric vehicle news site Electrek, previously reported the content of Musk's e-mail. In early 2020, amid sluggish auto sales around the world, Tesla temporarily cut some employees' wages and terminated their contracts with contract workers. It also fired an undisclosed number of workers after the annual performance review process. Tesla, who survived the Depression, re-hired subcontractors and improved workers' wages.   The e-mail sent last Tuesday reflects Musk's previous statements, but does not specify how Tesla will handle the budget. "We're trying to spend the money at the fastest and most useful rate," Musk told analysts and shareholders at the company's third-quarter earnings meeting. However, at the same meeting, Tesla CFO Zachary Kirkhorn said Tesla plans to increase its capital expenditure to $ 2.5 billion in 2021 and 2022. Increasing spending is planned to enable Tesla to manufacture products such as its own battery. Tesla raised $ 5 billion in September through equity growth, but approximately $ 1 billion of that is due at the transformation of the fourth quarter.   Tesla shares were trading at over $ 580 before the market close last Tuesday. Below is the entire email shared by Musk with his employees and published by CNBC: Submitted by: Elon Musk Sent: To everyone Subject: Costs are extremely important! Date: December 1, 2020   At a time when our stock is reaching new heights, it might seem like spending carefully isn't that important. This is absolutely not true! When we look at our real profitability, it is very low, around 1 percent, based on last year. Investors give us a lot of credit for the profitability we will have in the future, but if they conclude that this will not happen at any point, our stock will be instantly crushed like a souffle  under a sledgehammer! More importantly, we need to be much smarter about the money we spend to make our cars affordable. This is a challenging game in which even the pennies that require thousands of good ideas are calculated to improve part costs and factory process or simplify design while increasing quality. Great idea might be one that pays $ 5, but the vast majority of the winning ideas here are those with $ 0.50 or $ 0.20. To realize the electricity revolution, we must make electric cars, stationary batteries and solar power affordable for all. Thank you and it's great to work with you as always. Elon   Source: https://www.cnbc.com/ You may also be interested in: Tesla's Inclusion in the S&P 500 and Its Effects