Elon Musk worried Tesla could 'get crushed like a soufflé under a sledgehammer,' report says
Tesla shares are approaching the $600 level
With shares up nearly 600% year-to-date, Tesla CEO Elon Musk is worried the company's stock could "get crushed" if it doesn't start to focus on profitability and affordability.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 311.18 | -19.06 | -5.77% |
Musk's email, obtained by news outlet Electrek, notes that Telsa shares are being valued on future profits, but if investors decide the profitability isn't there, the company's stock will suffer drastically.
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"At a time like this, when our stock is reaching new highs, it may seem as though spending carefully is not as important," the 49-year-old tech exec wrote in the email. "This is definitely not true."
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Musk continued: "When looking at our actual profitability, it is very low at around 1% for the past year. Investors are giving us a lot of credit for future profits, 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!"
Tesla did not immediately respond to FOX Business' request for comment.
The company is also reportedly turning to Cybertruck reservation holders to lease other models, FOX Business reported earlier.
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