Elon Musk: Tesla breaking even in 2Q will be 'tight' due to coronavirus
Tesla has reportedly been focused on ramping up production of its Model Y SUV during the second quarter
As the second quarter comes to a close, Tesla CEO Elon Musk is asking employees to go "all-out" to help the company break even despite 'tight' odds due to the coronavirus pandemic, according to a report by the Associated Press.
BECAUSE OF CORONAVIRUS TESLA WORKERS STAYED HOME, FIRED FOR NOT RETURNING TO WORK
In an email to the company’s workers Monday, Musk reportedly wrote that it “really makes a difference for every car you build and deliver.”
In the first quarter, Tesla produced almost 103,000 vehicles and delivered approximately 88,400 vehicles. Tesla's model 3 and Y vehicles accounted for more than 87,000 of the vehicles produced and more than 76,000 of its deliveries while the model X and S accounted for more than 15,000 of its produced vehicles and more than 12,000 of its deliveries.
A spokesperson from Tesla did not immediately return FOX Business' request for comment on the email.
A masked man walks in the Tesla plant parking lot Monday, May 11, 2020, in Fremont, Calif. (AP Photo/Ben Margot)
According to AP, Tesla has been focused on ramping up production of its Model Y SUV during the second quarter, a project that was delayed by a battle last month with Alameda County, California to reopen its Fremont factory despite pandemic-induced lockdowns in the state.
According to filings with the state Employment Development Department (EDD), Tesla furloughed more than 11,000 workers during the closure.
As a result of the disagreement, the electric vehicle manufacturer has also floated moving out of the state but no official decision has been made. Musk has previously eyed moving production to Texas, where the company could potentially be given significant tax incentives.
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Tesla is expected to announce its second quarter production and delivery numbers on Thursday.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 248.98 | -0.87 | -0.35% |
In the first quarter, the Palo Alto, California-based company reported a $16 million net profit, its third-straight profitable quarter.
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The Associated Press contributed to this report