Tesla Shares Jump After Elon Musk Tells Employees to Minimize Costs
Shares of Tesla (NASDAQ: TSLA) were up by nearly 5% on Monday morning, after CEO Elon Musk directed his employees to concentrate on minimizing costs ahead of fourth quarter sales targets.
In a statement distributed to workers last week, Musk explained that he doesn’t want Tesla rushing to fulfill fourth quarter sales targets at the expense of increased delivery fees, temporary contractors, and overtime costs. “What has happened historically is that we sprint like crazy at end of quarter to maximize deliveries, but then deliveries drop massively in the first few weeks of the next quarter,” Musk said.
“In effect, looked at over a six month period, we won’t have delivered any extra cars but we will have spent a lot of money and burned ourselves out to accelerate deliveries in the last two weeks of each quarter,” he added. Tesla has recently faced criticism over failing to deliver new vehicles to customers on time, with some even left waiting months for their car to arrive.
However, despite worldwide supply chain disruptions and an ongoing semiconductor shortage, Tesla has been able to boost its global car shipments to more than 241,000 units in the third quarter, with plans to increase overall deliveries by around 50% each year.
Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
