Tesla climbs back above US$1000 on Musk's break-even email

Marco Green
June 30, 2020

With one day left before the second quarter closes, Tesla CEO Elon Musk is telling employees that prospects for the company breaking even for the three-month period are tight, and he's asking them to go all-out to make it happen. To be eligible, the company needs to report positive quarterly earnings under generally accepted accounting principles.

While analysts on average project Tesla will lose nearly $2 a share on a GAAP basis this quarter, higher-than-projected vehicle deliveries would make profitability a "less radical" idea, Dan Levy, a Credit Suisse analyst, wrote in a report Monday. The company delivered 88,400 vehicles in the first quarter.

If Musk is on the mark this time, the carmaker could qualify for inclusion in the S&P 500 Index.

Production at Tesla's only USA vehicle factory in California was shut down for more than six weeks from the end of March to early May due to local lockdown orders aimed at curbing the spread of the coronavirus. Tesla and Musk clashed with officials over the restrictions and resumed vehicle production shifts the second week of May, days before the county would green light the company's "site-specific plan" to allow employees back at work.

Tesla in April surprised investors when it said production and delivery of its new sport utility vehicle, Model Y, was significantly ahead of schedule despite the virus outbreak. It produced about 14,000 more cars than it delivered in the first quarter - making a total of 102,672 vehicles.

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

Other reports by Click Lancashire

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