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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?
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Comments

  • Teslas operating margin is higher than legacy automaker's car sale margin.
  • I wish all other manufacturers treated every process as if the life of the company depended on it as much as Tesla does. Now is not the time to rest on their laurels. Tesla is the first manufacturer of physical goods that I’ve seen adopt a CI/CD pipeline similar to software. Continuous Improvement / Continuous Deployment.

    ...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.
  • Fish is learning that stocks are volatile. Cool stuff.
  • > @Xerogas said: > I wish all other manufacturers treated every process as if the life of the company depended on it as much as Tesla does."

    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.
  • Fish is sore loser.
  • Here's and example of why Tesla is not profitable and goes directly to Musk's "cost savings". How much are the fixes for this design/mfg flaw in the new Model 3's? Sloppy.

    https://forums.tesla.com/discussion/179286/2021-model-3-long-range-reports-of-faulty-discharge-sensor-in-hvac-system-broken-heater
  • Here’s an example of Tesla being profitable 5 quarters in a row . . .

    https://apnews.com/article/pollution-earnings-economy-11857f6e698818426e77de4a2c86de4f

    But please continue. Lulz
  • > @SamO said: > Here’s an example of Tesla being profitable 5 quarters in a row . "

    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.
  • Wrong again dumbfuck. We can set a clock on your daily errors.

    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.
  • > @SamO said: > ZEV credits aren’t going anywhere."

    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
  • > @blkice said:
    > 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.
  • finite life span. there is always something new to lie about.
  • Thank you for keeping track of all the FishClown lies. Priceless!
  • Fish, can you name one industry that does not get some benefit from the Federal and or State government via the the tax code or other incentives. Most common examples are probably normal depreciation and amortization and accelerated depreciation and amortization tax benefits. The list of allowable deductions, credits and subsidies goes on and on, and this doesn't even cover import taxes and fees to give industries less competition from foreign entities.

    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.
  • If Tesla can scale their energy distribution model they become too big to fail, at which point they will end up being a public utility and subsidy. I don’t believe the stock market itself has any long term valuations above 0 as the Anthropocene butts up against finite resources, entropy, and an economy dependent on waste as a byproduct of energy.

    Tesla isn’t a car company any more than GM is an energy company.
  • > @6EQUJ5 said:
    > Tesla isn’t a car company any more than GM is an energy company.

    There is a reason they dropped "motors" from the name.
  • Elon said 1% by excluding the 400M in regulatory credits.
    But if he excluded the 400M in R&D that would make a 4% profit margin.
  • > @FISHEV said:
    > 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...
  • Big risks can equal big rewards. That's the reason I'm not really rich, but I'm not really poor either. I indirectly own stock in Tesla through different funds. I'm an old coot and wouldn't directly buy Tesla's stock. It's alright for the younger investors who will have a longer time to recover if things don't well with Tesla. Not judging or disagreeing with any of the posters.
  • > @mcmack15_98171493 said: > Fish, can you name one industry that does not get some benefit from the Federal and or State government via the the tax code or other incentives."

    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.
  • @FishEV said "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.
  • More FISH lies. There are no subsidies to Tesla and ZEV credits are paid by companies who only make mass-polluting vehicles, not the government.

    The oil industry gets trillions in subsidies, almost free land and water leases, and sucks us into endless middle-east wars.
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