Market Overview

Musk Wants Tesla Employees To Pinch Pennies For Profitability

Musk Wants Tesla Employees To Pinch Pennies For Profitability

An email memo obtained by Electrek reveals cost-cutting measures being put into place at Tesla Inc (NASDAQ: TSLA).

What Happened: Tesla CEO Elon Musk emailed employees asking for help to maintain profitability by reducing costs.

“This is a tough Game of Pennies – requiring thousands of good ideas to improve part cost. A great idea would be one that saves $5, but the vast majority are 50 cents here of 20 cents there,” Musk reportedly wrote in the memo.

Related Link: Tesla’s S&P 500 Inclusion Could Move Elon Musk Up Billionaire Ladder

Why It’s Important: Tesla has turned a profit in five consecutive quarters, which could have helped the electric vehicle stock’s entry into the S&P 500.

Tesla stock is up over 575% in 2020, but Musk said it could be short-lived.

“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 souffle under a sledgehammer!” Musk said.

TSLA Price Action: Shares of Tesla closed Tuesday up 3% to $584.76. 

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Photo Courtesy: Steve Jurvetson on Flickr.


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