Elon Musk Musk warned Tesla employees about the risks of a collapse of the company shares
Elon Musk Musk warned Tesla ...
Subscribe to Newsletter

Elon Musk Musk warned Tesla employees about the risks of a collapse of the company shares

3 December 2020
3049
2 min.
4
Elon Musk Musk warned Tesla employees about the risks of a collapse of the company shares

Reduction of expenses in the Company

The head of Tesla believes that the company needs to focus on making profits and reducing costs to meet investor expectations.

Elon Musk has warned its employees that they need to focus on making a profit. Otherwise, Tesla shares could plummet. He said this in a letter to the company's employees, which was read by CNBC.

The CEO of Tesla Elon Musk said: "If you look at our actual profitability, it is very low around 1% over the past year. Investors are hoping for our future profits, and if they decide that we cannot make them, our shares will collapse immediately like a sledgehammer hit soufflé".

Musk also informed its employees about the need for greater savings. The publication specifies that such measures are needed, among other things, due to Tesla's desire to produce a more affordable electric car within three years.

Tesla shares are currently experiencing rapid growth, which led to a $100 billion increase in value for the company in November. As of 30 November, the market capitalisation of the electric car manufacturer was over $538 billion.

Tesla reported profits for the previous five consecutive quarters. However, the company has been able to earn primarily by selling ZEV loans (Zero-Emission Vehicle Credit) to other car manufacturers. Other companies buy them in order not to lose their licence to sell cars in some American states or in countries that are actively fighting against environmental pollution. Tesla has a lot of credits of this type because it exclusively produces electric cars.

As for cost-cutting, the company has already implemented such an initiative last year. In 2019, Musk and the CFO of Zach Kirkhorn, as part of the monitoring group, personally checked every payment, including the cost of spare parts, salaries and travel expenses.

We remind you that on 21 December, Tesla shares will be included in the S&P 500 broad market index. The company will be the most expensive inclusion in the history of the index its weight will exceed 1% of the total S&P 500. The growth of Tesla shares since the announcement of their inclusion in the S&P 500 already exceeds 40%. Quotations have increased by 560% since the beginning of the year.

Persons2 and Companies2 in the news

Chief financial officer at Tesla
1 place
CEO of Tesla
2 place
CNBC
1 place
Tesla
2 place
Section:
Rating companies
Instagram
15 Mention
Tesla
14 Mention
Netflix
13 Mention
JP Morgan Chase
11 Mention
Ford Motor Company
11 Mention
Amazon
10 Mention
TikTok
8 Mention
White House
7 Mention

NEW YORK NEWS

News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director
Population
8132257123
Died this year
27693249
Born this year
68130294