Tesla CEO Elon Musk sent a motivational email to all employees at his electric vehicle company on Monday, and just a day before the close of the second quarter, he pushed his staff to ramp up vehicle production.
Tesla CEO Elon Musk sent a motivational email to all employees at his electric vehicle company on Monday, and just a day before the close of the second quarter, he pushed his staff to ramp up vehicle production to help the company avoid loss. “Breaking even is looking super tight. Really makes a difference for every car you build and deliver. Please go all out to ensure victory,” Elon Musk wrote to all the employees of the company, CNBC reported. Tesla had about 48,000 employees at the end of last year, and CEO Elon Musk corresponds frequently with Tesla workers to push them to work harder.
The Palo Alto-based company is expected to report its second quarter vehicle production and deliveries numbers before the 4th of July. While the company had earlier said that it has a capacity installed to hit five lakh vehicle deliveries in 2020, Tesla later retracted on the same in its first quarter earnings update this year due to coronavirus situation and said that it remains uncertain how quickly its US car plant, and suppliers, can ramp up production following government restrictions. The company had also revised its near-term profit guidance and said that it is “on hold”. To increase its profit margins, Tesla may be required to sell a certain number of vehicles during the quarter.
Tesla looks for an inclusion on the S&P 500, but, the same requires a minimum of four consecutive quarters of profitability. The company has already reported profits in its last three quarters with the first quarter net profit reported close to $16 million. However, the coronavirus situation dampened hopes this time as Tesla had to shut down its operations in the main manufacturing facility in Fremont, California for more than a month as non-essential operations were directed to be closed. Elon Musk and Tesla had then also clashed with officials over restrictions.