Published 17:34 IST, December 3rd 2020
Elon Musk warns Tesla workers over stocks being 'crushed' in an internal memo
Elon Musk has warned in an internal email that Tesla’s leading shares could get “crushed” if investors begin worrying about the company’s profitability.
- World News
- 2 min read
Just days after Tesla CEO Elon Musk surpassed Microsoft co-founder Bill Gates to become world’s second-richest person, the SpaceX founder warned in an internal email that Tesla’s leading shares could get “crushed” if investors begin worrying about the electric-car manufacturing company’s ability to match the profit expectations. In an internal message noted by Bloomberg News, Musk wrote that the company’s stock could “get crushed like a souffle under a sledgehammer” considering the fact that the “actual profitability” of Tesla is “very low” for the past year.
The Tesla CEO urged his employees to remain vigilant and focus on cutting costs to prevent a bounceback in the company’s soaring stock price. The email was reportedly sent on December 1 to the employees when the California-based firm is working on meeting the target of delivering half a million cars this year. However, Tesla has not yet responded to any media outlet for comment. The company’s stock has skyrocketed almost 600% in 2020.
"At a time like this, when our stock is reaching new heights, it may seem as though spending carefully is not as important. This is definitely not true!" Musk wrote in the email.
Tesla’s profit in 2020
The year 2020 has been pleasantly good for Musk with his fortunes being directly linked to Tesla of which according to Bloomberg, the last own 20% of the company’s stock. Meanwhile, this year, amid the COVID-19 pandemic, Tesla’s stock spiked almost 524% contributing to Musk adding over $100 billion to his wealth. Tesla CEO Elon Musk surpassed Microsoft co-founder Bill Gates earlier this week and became the world’s second-richest person with net worth soaring from $7.2 billion to $127.9 billion.
Outside of Tesla, Elon Musk also oversees SpaceX, his space exploration firm that recently made historic launches including the missions in collaboration with NASA. He is also the father of six and chairman of Musk Foundation which is an organisation that supporters research into renewable energy along with humans in space. Just last week, Tesla was accepted into the S&P 500 and is set to join the index next month.
Updated 17:34 IST, December 3rd 2020