Tesla CEO Elon Musk is certainly not taking his foot off the proverbial gas pedal.
Musk warned employees that his electric-car company must maintain diligence on profit/loss numbers or Tesla stock will face difficult consequences.
Internal emails obtained Tuesday by Electrek and CNBC reveal Musk’s directive on future profits.
“Investors are giving us a lot of credit for future profitability but if, at any point, they conclude that’s not going to happen, our stock will immediately get crushed like a soufflé under a sledgehammer!” Musk wrote in the email.
Tesla has been profitable for the past five quarters and its stock has risen substantially, but Musk is measured, citing company profitability as very low, at around 1%.
Tesla did not respond for comment Tuesday when asked about the email, but Musk has stressed caution, tweeting earlier this year, “Tesla stock price is too high.”
Shares are up by 600% year to date and Tesla’s valuation roared past $500 billion this week, with the stock trading Wednesday at better than $560 as of midday.
As an indicator of Musk’s concern, Tesla’s profits may prove to be inflated. The company benefited from “green” regulatory credits that likely will be reduced as rival electric-car companies grow and start collecting their own credits.
Also, the company continues to spend big money on new factories in Berlin and Austin, Texas, while revamping its Fremont, California, facility.
The Tuesday email does not specify how Tesla plans to adjust the budget.
After talking about pinching pennies in the email, Musk concluded:
“In order to make the electric revolution happen, we must make electric cars, stationary batteries and solar affordable to all.
“Thanks and great working with you as always,