Home News Tesla Shares Rise After Elon Musk Urges Employees to Reduce Costs

Tesla Shares Rise After Elon Musk Urges Employees to Reduce Costs

Tesla Shares Rise After Elon Musk Urges Employees to Reduce Costs

Shares of Tesla closed up 5% on Monday after CEO Elon Musk issued a memo to employees, urging them to focus on minimizing costs, instead of rushing orders out last-minute to hit the company’s end of quarter sales targets.

In the memo distributed Friday, Musk wrote that he doesn’t want the company to spend heavily on “expedite fees, overtime, and temporary contractors just so that cars arrive in Q4.”

“What has happened historically is that we sprint like crazy at end of the quarter to maximize deliveries, but then deliveries drop massively in the first few weeks of the next quarter,” Musk said. “In effect, looked at over a six month period, we won’t have delivered any extra cars but we will have spent a lot of money and burned ourselves out to accelerate deliveries in the last two weeks of each quarter.”

Musk wrote in a tweet Monday afternoon that the end-of-quarter delivery push will “still be very intense, just slightly less than in the past.”

Tesla has recently struggled to deliver new cars to customers in the U.S. in line with originally promised date ranges. That’s led some Tesla customers to experience months-long delivery delays, CNBC previously reported.

Still, sales have grown this year for Tesla. Vehicle deliveries, which are the closest approximation to sales, amounted to about 500,000 total in 2020.

The company is also reportedly making progress on its first European factory in Brandenburg, Germany, according to German auto news site Automobilwoche. Tesla intended to start production of vehicles by early summer of 2021 in Germany, but factory construction was delayed following a court order spurred by environmentalists who said their activity could harm hibernating snakes and lizards.

Last week, filings with the Texas Department of Regulation showed the company is making progress on a new vehicle factory in Austin, Texas. Tesla is planning to spend more than $1 billion on the factory and plans to complete construction by the end of this year.

Tesla is also planning to invest $188 million to expand production capacity at its Shanghai factory, the state-backed Beijing Daily newspaper reported late last week.

Eskalera, a Startup Led by Goldman Sachs’ Former HR Head Has Launched a Diversity and Inclusion Index

Eskalera, a technology startup led by Goldman Sachs former human resources head Dane Holmes, has launched an index to measure corporate diversity and inclusiveness,...

HSBC to Remove 35,000 Jobs Amidst Covid-19 Crises

HSBC Holdings Plc has restarted cutting as many as 35,000 jobs, three months after the coronavirus outbreak forced it to pause a long-awaited overhaul...

Genpact Offers Its Internal Skill Training Program Globally for Everyone

Genpact has announced Adapt and Rise, a role-based online learning platform that leverages Genpact's expertise honed from delivering real-world change for hundreds of clients....

San-Francisco Based Learning Platform Degreed Has Raised $32 Million in New Funding

The upskilling platform, Degreed, has announced $32 million in new funding in direct response to overwhelming demand for better skill insights, talent mobility, and...

Research Shows the Implications of Workplace Layouts on Employee Productivity and Overall Performance

As some workplaces prepare for the gradual return of employees and overhaul office layouts and seating plans, research has shown this could also have...

Employee Concierge ‘Back Technologies’ Integrates Automation Into Internal HR and Other Support Tasks

Companies are under increasing pressure to automate workflows and digitally service their employees, particularly in light of trends toward remote work. It takes an...

HR Strategies to Help Your Business Navigate the New ‘Normal’

No business is immune to the massive changes resulting from the health crisis. Organizations have proven themselves to be agile, and employees have demonstrated...

The Importance Of Diversity And Inclusion In HR, Hiring, Talent Management: Thoughts From A Top Expert

Michael C. Hyter is one of today’s best-known experts on inclusion and diversity and the author of The Power of Choice: Embracing Efficacy to Drive Your Career and The...

HR Expert Highlights Actionable Steps to ‘Make Real Change’ Against Racism in Your Workplace

Kyra Leigh Sutton, Ph.D., is a faculty member at the Rutgers University School of Management and Labor Relations, where she teaches human resources courses...

Adidas Employees Want Company to Investigate HR Chief for Response to Racial Issues

A group of Adidas employees from around the globe is asking the company to investigate its chief human resources officer, as part of a...