'Breaking even is looking super tight' - Musk

Joanna Estrada
June 30, 2020

In an email to the company's workers Monday, Musk reportedly wrote that it "really makes a difference for every auto you build and deliver".

The electric vehicle and solar panel company is cranking out the new Model Y smaller SUV as it tries to break even or make money.

While most analysts have predicted Tesla's Q2 deliveries to total somewhere between 60,000-75,000 units (which would represent a decline on the last quarter and on the same period last year), a recent report from Electrek cited sources claiming "deliveries in North America have picked up greatly in June, with already more than 50,000 deliveries and nearly 10,000 vehicles in transit".

Tesla shares rose 5.17% to close at $US1,009.35 ($A1,466.70) on Monday, signaling a second run over $US1,000 since Tesla first hit the milestone mark that pushed its value over that of global vehicle giant Toyota in early June.

The pension fund, which represents Detroit's police and fire departments, is an investor in Tesla and argues that the automaker's board of directors channeled hundreds of millions of dollars to generate high payments in compensation packages, according to a report.by Bloomberg published on Thursday June 18.

Electric vehicle site Electrek first reported the news.

As reported by CNBC, Musk's rallying cry could also be driven by the company's efforts to make it onto the S&P 500 stock market index, which requires a company to have four consecutive quarters of profitability to warrant inclusion - Tesla has so far reported three consecutive quarters of profit.

So, Amazon has acquired the California headquartered Zoox to counter Tesla.

On the back of the opening of the Shanghai factory and a profitable 2019, Tesla shares are now worth more than double the $US430 at year's start. Although he will have to meet the targets for his compensation to be released, Musk could take $ 50 billion in shares. Tesla had about 48,000 workers at the end of past year. The company had also revised its near-term profit guidance and said that it is "on hold". His tenure has been marked by controversy, but from an investment perspective, it has been an incredible run: "The stock has gone up roughly 50-fold since it started trading in 2010, and has more than doubled this year", writes Barron's.

Other reports by Click Lancashire

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