Elon Musk warns employees Tesla's stock could 'get crushed like a soufflé under a sledgehammer'
"But in an email to employees Musk acknowledged that Tesla's actual profit margin is fairly low, only about 1%, and that the stock price is due to investor expectations of future profits rather than recent results."
"If, at any point, they conclude that's not going to happen, our stock will immediately get crushed like a soufflé under a sledgehammer!" he wrote in the email, which was first reported by Electrek. Tesla did not respond to a request for comment about the email."
"The email was primarily focused on the importance of finding even small cost savings in the car building process. This 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," Musk wrote. "A great idea would be one that saves $5, but the vast majority are 50 cents here or 20 cents there."
https://www.cnn.com/2020/12/02/business/elon-musk-tesla-stock-price/index.html
Tesla with Model 3 and Model Y has had huge quality control issues that have to cost a lot of money.
Wouldn't the single biggest cost saving being taking time and effort to build cars that have zero warranty and start up issues?
"If, at any point, they conclude that's not going to happen, our stock will immediately get crushed like a soufflé under a sledgehammer!" he wrote in the email, which was first reported by Electrek. Tesla did not respond to a request for comment about the email."
"The email was primarily focused on the importance of finding even small cost savings in the car building process. This 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," Musk wrote. "A great idea would be one that saves $5, but the vast majority are 50 cents here or 20 cents there."
https://www.cnn.com/2020/12/02/business/elon-musk-tesla-stock-price/index.html
Tesla with Model 3 and Model Y has had huge quality control issues that have to cost a lot of money.
Wouldn't the single biggest cost saving being taking time and effort to build cars that have zero warranty and start up issues?
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Comments
...and only Tesla knows what costs them a lot of money. Fabricated QC issues are likely not one of them. Anybody remember “whompy wheels”? Turns out it was an ingenious life-saving purposeful design.
None would survive with Tesla's cavalier attitude to Quality Control. We see it here daily, the heaters not working after two weeks. "Tesla will fix it". But that fix is from not treating every process like the company depended upon it and why, as Musk noted, Teslas profits are lowest in the car industry.
If one took away the Federal support of $500M a year in ZEV credits, Tesla makes no profit.
Musk's ask has to start with himself and demanding better engineering and mfg quality.
https://forums.tesla.com/discussion/179286/2021-model-3-long-range-reports-of-faulty-discharge-sensor-in-hvac-system-broken-heater
https://apnews.com/article/pollution-earnings-economy-11857f6e698818426e77de4a2c86de4f
But please continue. Lulz
As Musk himself noted, barely 1% and, take away the Federal subsidy of $500M a year for ZEV credits and Tesla has never made a profit.
Last quarter Tesla made a profit without the credits.
But even if they didn’t you still be a fucking liar because ...they still made a profit 5 quarters in a row. Just because Ford, Fiat and GM make the worst climate destroying vehicle and are totally incompetent at building clean cars that’s people want to own.
ZEV credits aren’t going anywhere. Tesla will be making more $ next quarter from credits. More in credit $ than Ford or GM will make in profit.
Welcome to your nightmare guppy.
Now that Trump/GOP have been defeated, likely correct but irrelevant to issue that Tesla only makes a profit due to government subsidy and Musk's note about low profitability, less than other automakers even ones the size of Tesla (Subaru for example).
> Just a message to employees to keep the faith and work hard and smart. Typical management tool to shake up and wake up his employees
As he has always done. A mark of a great leader.
SuperChargers along with non-warranty service work is becoming a big profit center for Tesla
FISHEV | May 1, 2020
Looks like the revenue from Service and Charging gave Tesla a slim profit as it did in last quarters of 2019.
FISHEV | Nov 4, 2020
Tesla makes about $500-$800M on service and charging.
FISHEV | December 3, 2020
Tesla only makes a profit due to government subsidy.
Quick, they're onto you, dip into the bag of narratives and try again.
The simple fact is that Elon is extremely smart and talented (e.g., building Tesla and SpaceX----he is light years ahead of folks here on the forum that think they know more about building electric cars than he does, etc. because a car doesn't have a rear window wiper or something as trivial), and he built great cars that enabled him to take advantage of the environmental tax credits while others in the industry were unable to generate their own credits.
Tesla isn’t a car company any more than GM is an energy company.
> Tesla isn’t a car company any more than GM is an energy company.
There is a reason they dropped "motors" from the name.
But if he excluded the 400M in R&D that would make a 4% profit margin.
> take away the Federal subsidy of $500M a year for ZEV credits
Is this a story of 2 Fish?
One Fish keeps pushing Green New Deal agenda and pleading the we vote for legislatures that will create more regulations and more incentives/credits for clean energy...
And
One Fish hates the most successful Clean Energy company called Tesla and wants them to stop taking taxpayer $ in the form of EV credits...
And this has what to do with Tesla getting about $4B in direct and indirect subsidies and a steady $500M per year in government subsidy via ZEV credits.
For your question above, we await your research.
When you are posed a question, deflect. Never answer directly.
Copied verbatim from the Trolling Companion Handbook, chapter 1, subsection 13, article 4.
Oh, and there's that "we" again. Must be one heck of a brain trust consortium.
The oil industry gets trillions in subsidies, almost free land and water leases, and sucks us into endless middle-east wars.