CEO Elon Musk has some welcome news for investors.
is having its best quarter ever.
An email from Musk to
(ticker: TSLA) employees surfaced on Twitter Saturday. It contained some detail about Tesla’s fourth quarter as well as some advice for managers.
“I’d like to congratulate you on an excellent quarter so far,” reads the email sent to Tesla employees. “This is likely to be the best ever in Tesla history thanks in large part to your efforts.”
Tesla didn’t immediately respond to a request for comment, but Musk replied to the series of tweets about the email “Correct. Good Thread.”
It’s an early confirmation of what investors expect. Wall Street expects Tesla to deliver about 438,000 vehicles in the fourth quarter, up from 343,830 delivered in the third quarter of 2022 and 308,600 vehicles delivered in the fourth quarter of 2021.
Whether that translates into record operating profit can’t be known yet, but Wall Street expects a record by a wide margin, forecasting operating profit of $4.9 billion. That would eclipse the $3.7 billion reported in the third quarter of 2022.
Higher volumes should lead to higher profit, but EV prices have been coming down in China recently. Lower pricing can impact profit.
Musk addressed pricing in the email saying that it is “absolutely vital” that Tesla adhere to its policy of zero negotiations on pricing. Tesla didn’t immediately respond to a request for comment if price discounting had become an issue.
Along with the some detail about the current quarter. Musk had some advice for his managers and employees. “Excessive meetings are the blight of big companies,” wrote Musk in the second half of the email. He even suggested walking out of meetings when attendees are no longer providing any value.
Musk advocates for open communication between departments and the “free flow of information between all levels” of the company.
He advocates for common sense, too. It all sounds like reasonable advice for any business. Investors will likely focus on the first half of the employee communication.
Coming into Monday trading, Tesla stock is down about 48% this year, while the
Dow Jones Industrial Average
are off about 16% and 6%, respectively.
Tesla stock has been hit by a combination of factors such as rising interest rates, inflation, parts shortages, production disruption due to China’s zero-Covid policies as well Elon Musk taking on the task of turning around Twitter.
Tesla stock rose about 1.5% this past week, their first weekly rise in the past four weeks. Shares are down about 19% since Musk closed on his purchase of Twitter.
Write to Al Root at email@example.com