Tesla Inc. TSLA shares closed higher Wednesday after a second leaked email from CEO Elon Musk alluded to strong deliveries, but with a caution about an ongoing delivery crunch.
What Happened
Online publication Electrek obtained an email from Musk to employees that said demand for the company’s electric vehicles could produce an all-time second-quarter record.
However, the email said, “while our demand is strong, we have a lot of vehicle deliveries to catch up to in order to have a successful quarter.”
According to the Electrek report, "Musk said that he will start holding calls with Tesla’s delivery teams around the world every two days in order to know 'what's needed to accelerate our rate of deliveries.'"
The email followed a leaked missive on May 23 in which Musk told employees Tesla was on pace to beat the 90,700 cars it sold in the fourth quarter last year – if it could put out 1,000 Model 3s a day in June.
Why It's Important
The email could counter some of the market bearishness around Tesla, due to longstanding questions about whether it can deliver all the cars customers order, and fears around Chinese tariffs and lowering tax credits.
The Street will watch Tesla second-quarter sales numbers closely. The stock fell more than 8 percent when the company announced lower-than-expected first-quarter deliveries in early April.
Tesla's stock closed Wednesday's session up 0.61 percent at $189.86 per share.
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