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Tesla Daily: Tesla News & Analysis

Musk Email Suggests Possible Q2 Profitability (06.29.20)

Tesla Daily: Tesla News & Analysis

Rob Maurer

Tech News, Technology, News

4.81.1K Ratings

🗓️ 30 June 2020

⏱️ 10 minutes

🧾️ Download transcript

Summary

➤ In a new leaked email, Tesla CEO Elon Musk urges employees to go all out for profitability in Q2
➤ Analysis on Musk’s past leaked emails, how likely Tesla is to achieve profitability in Q2, and the implications of Q2 results including possible S&P 500 index inclusion

#Tesla #TSLA

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Ludicrous producer Fred Hassen
Executive producer Rish Singh
Executive producer Jeremy Cooke
Executive producer Nick Wood
Executive producer Troy Cherasaro
Executive producer Bradford Ferguson
Executive producer Andre Kent
Executive producer Bryce Langlotz
Editing assistance by Jasem Ashkanani
Music by Evan Schaeffer

Disclosure: Rob Maurer is long TSLA stock & derivatives

Transcript

Click on a timestamp to play from that location

0:00.0

Hey everybody Rob Maower here and today we are of course talking about another leaked

0:11.0

Elon Musk email here as we are two days before the end of

0:14.4

Tesla's second quarter and on that leaked email Tesla stock grows pretty

0:17.8

significantly towards the end of the day finishing up 5.2% to $1,09.35 that compared to the NASDAQ up 1.2%.

0:26.7

All right, so for those of you that have not yet seen the email,

0:29.0

Electric reported on this today.

0:30.6

Apparently the leaked email was titled,

0:32.4

Down to the last few days from Musk, and it wrote, quote,

0:36.0

breaking even is looking super tight, really makes a difference for every car you build

0:40.0

and deliver. Please go all out to ensure victory."

0:43.2

End quote. So a pretty clear email there that seems to offer some confirmation that the

0:47.6

speculation around Elon Musk's more cryptic email from last week was about profitability

0:52.3

and that email he wrote quote for many

0:54.4

reasons a great deal of Tesla execution worldwide is packed into the final week of the

0:58.4

quarter it is very important that we go all out through end of June 30th

1:02.1

to ensure a good outcome wouldn't bring this up if not very important."

1:06.0

End quote.

1:07.0

So within the last week, two emails focused on profitability and then recently we've also had price discounts on full self-driving and

1:13.7

autopilot upgrades for those that had purchased their vehicles and not opted for

1:17.1

those at the time, which is a pretty clear profitability lever because almost all of

1:20.9

that revenue on those upgrades falls straight to the bottom line.

1:24.4

Last quarter, Tesla delivered about 88,000 and half thousand vehicles and delivered a $16 million

...

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