Emphasizing Cost-Saving Ideas in Email to Employees
"Only 1% Profit Margin... Stock Price Could Plummet Anytime"
[Asia Economy Reporter Kwon Jae-hee] Elon Musk, CEO of Tesla, warned that Tesla's stock price could plummet at any time if cost reduction and profitability improvement are not achieved.
On the 1st (local time), Musk reportedly said this in an email sent to internal employees, according to CNBC.
In the email, Musk pointed out, "Tesla's actual profit margin has been very low, only about 1% over the past year," and added, "If the company's performance is not supported going forward, the stock price could crash."
He explained, "Investors have a lot of confidence in Tesla's future profits, but if at some point they conclude that profits will not materialize, Tesla's stock price will shatter like a souffl? under a big hammer."
He emphasized, "To make electric vehicles affordable, we need to be smarter about how we spend money."
In particular, he said, "The company's cost-cutting efforts are like a difficult penny game where every cent counts," and urged, "We need thousands of good ideas to improve electric vehicle parts costs, factory processes, and design while increasing quality and production volume."
He added, "It would be great to have proposals that save $5, but ideas that save 50 cents or 20 cents are also welcome."
This is not the first time Musk has ordered Tesla employees to reduce costs.
Last year, Musk implemented a company-wide cost reduction project reviewing all expenditure items such as salaries, parts costs, travel expenses, and rent.
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