MUSK WARNS TESLA THAT RECKLESSNESS CAN LEAD TO STOCK BEING ‘CRUSHED LIKE A SOUFFLé UNDER A SLEDGEHAMMER'

Tesla CEO, Elon Musk, recently launched a warning to Tesla Staff regarding Tesla's high-flying stock price.

Musk sent out a company-wide email to all staff confirming that investors had put a high price on future profit predictions.

He stated that "If at any point, they conclude that's not going to happen. Our stock will immediately get crushed like a soufflé under a sledgehammer!"

In October, Tesla reported the most profitable quarter ever, which allowed the company to reach its fourth consecutive positive reporting period. With their amazing results, the automaker was back on track for its first annual profit in a more than a decade. This also boosted the company to gain its spot in the S&P 500 index.

Tesla’s stock price has spiked by more than 579% this year alone, making Tesla more valuable than traditional automakers.

Despite the optimism and growing profits, Musk warned all employees that discretion is still key.

He stated that "At a time like this when our stock is reaching new heights, it may seem as though spending carefully is not as important. This is definitely not true! In order to make our cars affordable, we have to get smarter about how we spend money. This is a tough Game of Pennies, requiring thousands of good ideas to improve part cost, a factory process or simplify the design, while increasing quality and capabilities."

The full email sent by CEO and founder read:

At a time like this, when our stock is reaching new heights, it may seem as though spending carefully is not as important. This is definitely not true!

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 profitability, 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!

Much more important, in order to make our cars affordable, we have to get smarter about how we spend money. This is a tough Game of Pennies, requiring thousands of good ideas to improve part cost, a factory process or simplify the design, while increasing quality and capabilities. A great idea would be one that saves $5, but the vast majority are $0.50 here or $0.20 there.

In order to make the electric revolution happen, we must make electric cars, stationary batteries and solar affordable to all.

Thanks and great working with you as always,

Elon