This photo of a production version of the Tesla Model Y was included in the company’s fourth quarter 2019 earnings report.
Tesla
Tesla CEO Elon Musk sent one of his signature motivational emails to all employees of his electric vehicle company Monday around noon California time.
In the email, which was shared with CNBC, he urged workers to “do everything possible” with vehicle production and delivery, and told them that “reaching break-even point looks very tight.”
It’s unclear whether “breakeven” was referring to the company’s profit margin, which may require it to sell a certain number of vehicles during the quarter, or another metric, such as production numbers versus expectations or figures from previous quarters. .
Tesla is expected to report its second-quarter vehicle production and delivery numbers this week, before the weekend of July 4.
In its first-quarter earnings update for this year, Tesla backed down from previous guidance saying it has “installed capacity” to reach 500,000 vehicle deliveries by 2020, but remains unsure how fast its auto plant and EE suppliers are. Production may increase after Covid- 19 restrictions.
At the time, Tesla also said its short-term earnings guidance was “on hold,” lowering hopes that it could achieve its first full year of profitability.
The company is seeking inclusion in the S&P 500, which requires a minimum of four consecutive quarters of profitability. Tesla has reported earnings in its last three quarters.
Earlier this quarter, Tesla’s main manufacturing facilities in Fremont, California, closed for more than a month, as officials ordered non-core companies to shut down to curb the spread of Covid-19. Tesla and Musk clashed with officials over the restrictions and resumed vehicle production shifts the second week of May, days before the county approved the company’s “site-specific plan” to allow employees to return to work. .
The company is producing its latest Model Y crossover SUVs in a massive tent, where it previously manufactured a portion of its Model 3 electric sedans. In the tent, known as GA4 (or General Assembly 4), workers make cars with more processes. manuals instead of the sophisticated robotics and extensive automation they use in an interior part of the plant.
In the first quarter of the year, Tesla said it delivered about 88,400 vehicles, including combined deliveries of 76,200 Model 3 sedans and Model Y crossover SUVs, and combined deliveries of 12,200 of the older and more expensive Model S and X vehicles. It produced about 14,000 more cars than it delivered in the first quarter, making a total of 102,672 vehicles.
Here is the email in its entirety, transcribed by CNBC.
Subject: until the last days
To all
From: Elon Musk
Date: June 29, 2020
Breaking down even looks very tight. It really makes a difference for every car you build and deliver. Do your best to ensure victory!
Thank you,
Elon
.
