Elon Musk Emails Tesla Employees – Pushes For Q3 Profitability To Silence Naysayers
Tesla CEO Elon Musk reportedly sent out a mass email to Tesla employees “urging them to cut costs and deliver “every car we possibly can” in a push to show positive cash flow in the third quarter,” according to Bloomberg.
Bloomberg says that it obtained a copy of the email this past Friday and was able to verify its authenticity through a Tesla spokesperson.
The email states:
“The simple reality of it is that we will be in a far better position to convince potential investors to bet on us if the headline is not ‘Tesla Loses Money Again,’ but rather ‘Tesla Defies All Expectations and Achieves Profitability. That would be amazing!”
For Tesla, Q3 will be the automaker’s last chance to show profitability prior to the ramp up (with lots of associated spending) of the Model 3. Per the email:
“I thought it was important to write you a note directly to let you know how critical this quarter is, The third quarter will be our last chance to show investors that Tesla can be at least slightly positive cash flow and profitable before the Model 3 reaches full production.”
According to the email, Tesla is “on the razor’s edge of achieving a good Q3, but it requires building and delivering every car we possibly can, while simultaneously trimming any cost that isn’t critical, at least for the next 4.5 weeks.”
Tesla hopes to deliver 80,000 cars this year, but the automaker missed its sales targets for the first two quarters of 2016, so Q3 and Q4 will be important if Tesla hopes to still achieve its 80k unit goal.
Lastly, as Musk points out in the email, a profitable Q3 would allow Tesla to temporarily silence some naysayers:
“It would be awesome to throw a pie in the face of all naysayers on Wall Street who keep insisting that Tesla will always be a money loser!”
Source: Automotive News