Bloomberg has gotten an internal email from Tesla CEO Elon Musk to workers, where Musk encourages cost-cutting and a productivity push for the rest of the present quarter.
Tesla has to raise more capital quickly to fund the spin-up of Model 3 production, building of its Gigafactory battery center, and a planned acquisition of SolarCity. In the email, sent on August 29th, Musk notes that showing “at least slightly positive cash flow” ahead of that increase would be “awesome”.
“The simple reality of it is that we will be in a far better position to convince potential investors to bet on us if the headline is not ‘Tesla Loses Money Again,’ but rather ‘Tesla Defies All Expectations and Achieves Profitability.'”
Financial issues have added to a sharp drop in Tesla’s stock rate in recent days. The damage of a SpaceX rocket on September 1st perhaps piled on the pressure by casting a shadow on Musk’s other firm.
Musk does provide some comfort to Tesla employees fearing continuous austerity, though, with an apparent focus on the much shorter term. He states the company ought to be “trimming any cost that isn’t critical, at least for the next 4.5 weeks”.
A Tesla spokesperson verified the credibility of the memo to Bloomberg.
In addition to cost-cutting, Musk likewise wishes to push to provide “every car we possibly can,” to help fulfill Tesla’s objective of providing 80,000 vehicles this year.