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“Break also seems very tight”



This photo of a production version of Tesla’s Y model was included in the company’s 4th quarter 2019 earnings report.

Tesla

Elon Musk, Tesla’s CEO, sent one of his motivational e-mails to all employees of his electric vehicle company on Monday around midday in California.

In the email, shared with CNBC, he urged workers to “do everything”

; with the production and delivery of vehicles, and told them that “the tie is super tight”.

It is unclear whether the “breakeven” referred to the company’s profit margin, which may require it to sell a certain number of vehicles during the quarter, or another metric, such as production numbers versus expectations or data. from previous quarters.

Tesla is expected to report second quarter production and delivery numbers this week, before the weekend of July 4th.

In its first quarter earnings update this year, Tesla abandoned the previous guide saying it has “installed capacity” to hit 500,000 vehicle deliveries in 2020, but remains uncertain how fast its American auto plant and suppliers can accelerate production after Covid- 19 restrictions.

At the time, Tesla also said that his short-term profit guide was “pending”, dampening hopes that it could reach its first full year of profitability.

The company is seeking inclusion in the S&P 500, which requires a minimum of four consecutive quarters of profitability. Tesla has posted profits in the past three quarters.

Earlier this quarter, Tesla’s main manufacturing facility in Fremont, California was shut down for over a month as officials ordered non-essential companies to close to slow the spread of Covid-19. Tesla and Musk clashed with officials over restrictions and resumed vehicle production shifts the second week of May, days before the county would give the go-ahead for the company’s “site-specific plan” to allow employees to Go back to work.

The company is producing its latest Model Y crossover SUVs in a large tent, where it had previously made part of its Model 3 electric sedans. In the tent, known as GA4 (or General Assembly 4), workers build cars with multiple processes. manual, rather than the sophisticated robotics and extended automation they use in an internal part of the plant.

In the first quarter of the year, Tesla said it delivered approximately 88,400 vehicles, including combined deliveries of 76,200 Model 3 sedans and Model Y crossover SUVs, and combined deliveries of 12,200 of the older and more expensive Model S and X vehicles. It produced around 14,000 more cars than those delivered in the first quarter, for a total of 102,672 vehicles.

Here is the e-mail in its entirety, transcribed by CNBC.

Subject: Until the last days

To everyone

From: Elon Musk

Date: June 29, 2020

Breaking also seems very tight. It really makes a difference for every car you build and deliver. Please do everything to ensure victory!

Thank you,

Elon


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