Elon Musk worried Tesla could 'get crushed like a soufflé under a sledgehammer,' report says
Tesla shares are approaching the $600 level
Hercules Investments CEO James McDonald weighs in on the future of Tesla.
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.
TESLA WILL BE ADDED TO THE S&P 500 LIKE THIS...
"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.