Tesla ‘very close’ to profitability, Elon Musk tells employees
Tesla Inc. is on the verge of making a profit, Chief Executive Elon Musk reportedly told employees in a weekend email, as it scrambled to boost production and deliver cars on the last day of the third quarter.
According to Bloomberg News, Musk sent the encouraging email Saturday, just hours after settling a Securities and Exchange Commission fraud investigation that will cost Musk his post as chairman, and he and the company $40 million in penalties. Musk and Tesla agreed to the settlement without admitting or denying the SEC allegations.
Read: Elon Musk settles with SEC, will remain Tesla CEO but resign as chairman
“We are very close to achieving profitability and proving the naysayers wrong, but, to be certain, we must execute really well tomorrow (Sunday),” Musk wrote in the email, according to Bloomberg. “If we go all out tomorrow, we will achieve an epic victory beyond all expectations.”
Also see: Elon Musk is ‘a little bit of a numbnut,’ former SEC commissioner says
Sunday is the last day of the third quarter, and the highly anticipated production numbers could be released as soon as Monday. Tesla was going all out over the weekend, even recruiting an army of volunteers to help deliver new Model 3 sedans, Bloomberg reported.
Tesla had vowed to produce between 50,000 and 55,000 Model 3s this quarter. On Friday, the online publication Electrek reported Tesla had passed the 51,000 mark a couple of days before the end of the quarter.
While delivering that ramped-up production number would be impressive, turning a profit would be even more so. Tesla has a long record of losses, and electric-car makers have never consistently achieved profitability.
Tesla shares TSLA, -13.90% plunged 14% Friday, after news of the SEC’s fraud investigation broke the day before. Its stock is down about 15% year to date, compared to the S&P 500’s SPX, +0.00% 9% gain.
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