With the announcement that Tesla [NASDAQ:TSLA] will join the S&P 500 index in December, its stock price has repeatedly hit new highs, and Tesla’s market value has exceeded $554 billion. Just a few days ago, Elon Musk received the Axel Springer Award. During an interview, when asked by Axel Springer CEO Mathias Dopfner, Musk stated that Tesla would never accept hostile takeovers but remains open to friendly cooperation and mergers and acquisitions.
According to CNBC, Musk sent an email to Tesla employees on Tuesday stressing the importance of cost control. He wrote in the email:
“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 not the case!
If we do not continue to keep a close eye on our spending, Tesla will run out of money. To be clear, I am not referring to extra expense, but rather to spending that could be more efficient. For example, we can reduce costs by being better at designing for manufacturability or by improving automation instead of designing a new part from scratch.
In the last fiscal year, we barely made an annual profit. If, at any point, issues arise that could cause Tesla to default on payments or violate covenants of our credit agreements, those issues could negatively impact our credit rating, which would make it more difficult to raise capital on favorable terms. In some cases, it could result in immediate liquidity concerns that would require us to seek a capital raise on unfavorable terms or even pursue a restructuring.
Moreover, there are many projects currently underway at Tesla that are critical to our mission and profitability. In order to make them successful, we must continue to keep a close eye on our spending.”
Thank you for working together, I feel deeply honored to work with you,
Elon.
Although Tesla has become the most valuable car company in the world, it still needs to spend a lot of manpower, financial resources and material resources on research and development. Therefore, it is necessary to open source, save money, improve production capacity, and control costs in order to maximize profits.🔗 Source: CleanTechnica, CNBC
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.