Categories
congratulates Tesla

Elon Musk congratulates Tesla employees ahead of Q2 deliveries report – CNBC

Vehicles pass the Tesla Inc. assembly plant in Fremont, California, U.S., on Monday, May 11, 2020.

David Paul Morris | Bloomberg | Getty Images

Around 11:00 a.m. California time on Wednesday, Tesla CEO Elon Musk sent out an e-mail congratulating his tens of thousands of employees.

“Just amazing how well you executed, especially in such difficult times. I am so proud to work with you!” read the email in its entirety.

Tesla is expected to report its second quarter vehicle delivery and production numbers after the bell on Thursday, and Musk’s Wednesday email suggests that Tesla hit its goals. It follows Musk’s exhortation earlier in the week to “go all out” as “breaking even is looking super tight.”

According to a consensus of analysts surveyed by FactSet, as of July 1, Wall Street expects Tesla to deliver 72,000 vehicles for the period. (Estimates range from 39,000 to 86,000 units expected.) 

Auto sales slumped during the second quarter after Covid-19 outbreaks led to health restrictions on households and businesses, mass layoffs and wage cuts. 

Tesla had to close its main U.S. car plant in Fremont, California, for several weeks due to health restrictions. Musk defied and sued regulators in Alameda County over their orders and returned to full operations a few days before getting official clearance to do so.

To revitalize demand, Tesla cut prices of its electric vehicles during Q2 by as much as 6% in North America. It also made pricing changes in China, where its Shanghai plant came back online relatively quickly after a health-related shutdown.

Throughout the last month of the quarter, Musk has sent several “Everybody” e-mails, which have promptly leaked to press, where shareholders could easily get a sense of his messaging.

For example, in early June, Musk sent out a pair of “Everybody” e-mails, obtained by CNBC and others, in which he boasted about a glowing Model Y review in the Wall Street Journal and urged employees to stay motivated amid Model Y production and delivery problems.

He said, in another one of the emails: “It is extremely important for us to ramp up Model Y production and minimize rectification needs.” He added, “We are doing reasonably well with S, X, and 3, but there are production and supply chain ramp challenges with Model Y, as is always the case with new products.” 

Tesla shares set new records Wednesday, giving the company a valuation of $208 billion and making it the most valued car company, ahead of Toyota.

Read More