And The Volatility Will Continue — LEAKED Email Surfaces, Tesla's Elon Musk Claims Historic Q2 Is Possible

The drama surrounding American electric vehicle manufacturer, Tesla, continues. Welcome to the show, folks.

In recent weeks shares of Tesla have been taking a pounding. As of Friday, the stock closed at about the $190/share mark. Reports are coming in from all angles of significant distress and the company has taken drastic actions to cut costs.

But, a "leaked" email that was sent companywide this past Wednesday seems to have given some TSLA bulls a much-needed lift. In it, Musk claims that the company may surpass its record Q4 deliveries.

The catch? Tesla needs to produce 1,000 Model 3 vehicles, daily.

What do you make of this, Spies?

From: Elon Musk

Subject: Exciting Goal!

Date: Wed 5/22/2019 10:45 PM

To: Everybody

As of yesterday, we had over 50,000 net new orders for this quarter. Based on current trends, we have a good chance of exceeding the record 90,700 deliveries of Q4 last year and making this the highest deliveries/sales quarter in Tesla history!

In order to achieve this, we need sustained output of 1,000 Model 3’s per day. Almost all parts of the Model 3 production system have exceeded 1000 units on multiple days (congratulations!!) and we’ve averaged about 900/day this week, so we’re only about 10% away from 7000/week.

If we rally hard, we can do it!

Thanks for your great work,

Elon?

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MDarringer - 5/26/2019 12:05:26 PM

-1 Boost

Manufacturers routinely produce cars and call them sales when they go unsold. Given that Elon has to sell his shit show before it goes bankrupt, he's bound to pull a stunt.

malba2367 - 5/26/2019 3:35:36 PM

+7 Boost

If a statement from Elon Musk about some pie in the sky goal causes you to become bullish on a stock then you have to rethink your investment strategies.

TomM - 5/26/2019 3:45:29 PM

+8 Boost

It is not just sales - Elon will need - it is Profits.

I will assume that as sales level out - the easy high priced tickets are now pretty much sold - and the ones that are left are for less well equipped cars. So - even if they do sell at record rates - they are still up against their cash position - which is not so good.

Add in recent increases in price of Lithium and other rare earth elements needed to make batteries and Electric motors- and they really need another new model - one to really take the place of the X and be an SUV. ANother cash cow. It is not in place though.

SanJoseDriver - 5/26/2019 4:37:52 PM

-8 Boost

They have $4 billion to work with right now, if they got back above the 90k/quarter sales mark the cash position should be fine as long as costs did not rise per unit.

MDarringer - 5/26/2019 5:19:14 PM

+2 Boost

BS! If they have $4B then why can't they afford toilet paper?

CANADIANCOMMENTS - 5/26/2019 6:48:23 PM

-1 Boost

@MD-Could be. But the banks have billions, no more company pensions and now in the lab they are playing with holograms as well as NLP and facial recognition software to see if they can replace people. This change could reduce headcount by 10's of thousands of staff at large national banks. They don't need to, but they are.

MDarringer - 5/26/2019 7:48:26 PM

-3 Boost

@CC hitting to vodka early this afternoon?

CANADIANCOMMENTS - 5/26/2019 9:37:31 PM

-3 Boost

@MD- Not a drinker. Only red wine in the house growing up. Never developed a taste for any of it. Slows you down on the bike. We run a dry campsite at the 24hr. No drunken fools missing laps or riding slow on my team. No hitting the bong either for similar reasons.

MDarringer - 5/26/2019 10:54:31 PM

-3 Boost

EEW You're a cyclist?????

CANADIANCOMMENTS - 5/27/2019 8:41:52 PM

+1 Boost

@MD-Don't knock it. Nothing hotter than a 40yr old woman in top shape in her bike kit. Also there is also nothing quite like doing a night lap at 3AM and going full throttle through the forest doing your share. To be on a 8 person relay team and end up on the podium after 24hrs of racing is surreal when the squad had never cracked the top 5 before. A top 5 day in my life that is for sure.

MDarringer - 5/27/2019 9:23:30 PM

-4 Boost

I can think of a LOT of things and people hotter than a 40 year old woman in ugly cyclist garb.

MDarringer - 5/27/2019 10:44:40 PM

-4 Boost

@CC I told my wife your comment and she said "Camel toes and moose knuckles...no thanks." God, I love her.

You'd probably have fun enjoying a dark red sitting on the patio watching the river flow by after and hair raising spin in the Sagaris. I drive it occasionally with RMF plates.

CANADIANCOMMENTS - 5/28/2019 9:47:17 AM

0 Boost

@MD- You can tell your wife the chamois that is in the bike shorts eliminates any unsightliness. Being mainly black helps too. These are not yoga pants. But her comment is priceless!

Truthy - 5/28/2019 5:07:53 PM

+1 Boost

$4 billion is not nearly enough. They have massive debt. $3 billion will buy some time on debt, but more money is needed for growth and ongoing operations. MD keeps saying that their brand is the only thing of value.
Be it this year or next, that will be the only thing that lives on.
They need to sell to a legacy manufacturer that will bring a focused real CEO and manufacturing expertise, like Nissan.

MDarringer - 5/28/2019 8:13:19 PM

-2 Boost

@CC What is really hot is a 30 year old CFO that can drift a TVR with the best of them. We make sure to stay in tip-top shape. She took the Corvette to work and a male co-worker noted she was not driving her mommy car. She asked if he wanted a ride, and then proceeded to scare the living hell out of him in the back lot. That is priceless.

PUGPROUD - 5/26/2019 4:54:30 PM

+3 Boost

When you find yourself in a hole stop digging. The more proclamations of future success the deeper the hole Musk digs for himself. The retail market and the financial markets are finally (what took you so long) catching on to his antics. His $2.0 billion pay package last year is totally based on future stock price performance and its looking mighty bleak when analysts are now predicting a potential double digit stock price in his future. Musk seems headed for a potential emotional melt down.

skytop - 5/27/2019 8:40:48 PM

+2 Boost

Musk is about to destroy the night time sky around the world forever with his 'Starlink' system. Musk is putting up 12,000 satellites at 550km.

I am hoping the U.S. and international countries will put a stop to his insane plans.

SanJoseDriver - 5/29/2019 3:05:49 AM

-5 Boost

Yup, it's not like anyone wants cheap multi-gigabit internet

MDarringer - 5/29/2019 8:14:18 AM

-1 Boost

The Chinese need easy targets to hobble us.