Elon Musk Urges Tesla Employees in Email to Focus on Profit, Costs

If Tesla investors conclude that profits won't continue, 'our stock will immediately get crushed like a soufflé under a sledgehammer!' Elon Musk writes in an email.
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Tesla's  (TSLA) - Get Report Elon Musk has called for a focus on profit and cost-cutting in an email the CEO sent to the electric vehicle company's employees, Electrek reported.

“At a time like this, when our stock is reaching new highs, it may seem as though spending carefully is not as important. This is definitely not true,” Musk wrote in an email to Tesla employees that Electrek obtained. 

“When looking at our actual profitability, it is very low at around 1% for the past year. Investors are giving us a lot of credit for future profits, but if, at any point, they conclude that’s not going to happen, our stock will immediately get crushed like a soufflé under a sledgehammer!”

Tesla recently traded at $581.10, up 2.38%, and has skyrocketed 594% year to date.

Tesla has reported profits for five straight quarters, but they were small and largely due to sales of clean energy credits, Electrek noted.

“In order to make our cars affordable, we have to get smarter about how we spend money,” Musk said. “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. A great idea would be one that saves $5, but the vast majority are 50 cents here or 20 cents there.”

Meanwhile, Tesla will be added to the S&P 500 index in a single tranche on Dec. 21, despite concerns over the potential for trading volatility as funds shuffle their holdings to add shares of the electric vehicle company to their portfolios.