[ad_1]
Time to save money at Tesla.
Tesla
Yes, Tesla has made a profit for five consecutive quarters, but despite the company’s excellent financial results, earnings are still very slim. CEO Elon Musk is clearly aware of this, as evidenced by a new leaked email Electrek obtained and reported on Tuesday.
Musk called Tesla’s stock a “souffle under a sledgehammer,” according to the report, if the automaker can’t start making real profits. Over the past five quarters, the electric carmaker’s profits have come largely from regulatory credits. The CEO said that Tesla’s actual profitability is “very low, around 1% over the past year.” Tesla does not operate a public relations department to respond to requests for comment, so Roadshow cannot verify Musk’s words. However, we believe it.
Electric vehicles are a tough cookie to break when it comes to profitability, hence the numerous stories about “affordable” electric vehicles selling at a loss to automakers. Tesla has long hoped that greater scale would push the company into obscurity. While it appears to be working, it would take a lot to maintain the California-based automaker’s current share price. In November, Tesla became worth more than $ 500 billion, based on the love shown for Wall Street. Investors continue to bet on Tesla to generate strong profits going forward, even if that means turning a blind eye to short-term losses.
If investors decide they are tired of waiting, Tesla will pay a price that it probably cannot afford to lose. This requires a pinch of a penny, according to Musk. He called on the workforce to brainstorm ways to simplify design and improve the cost of a part or factory process. Based on the leaked email, he argues that small ideas can start to pile up.
Ultimately, it’s about making Tesla cars more affordable, something Musk joined in earlier this year when he declared his passion for a $ 25,000 EV Of the company. That could happen in three years, with the help of new battery cells that reduce costs. Until then, however, it appears Tesla is in for another round of greater frugality, even as it plans spend $ 12 billion to increase the production of vehicles and batteries at the same time.
See this:
Tesla Model 3 vs. Nissan Leaf: Electric Vehicles Fight Back
7:28
