Elon Musk Email Indicates Tesla May Break Even in Second Quarter

Elon Musk Email Indicates Tesla May Break Even in Second Quarter

'Breaking even is looking super tight. ... Please go all out to ensure victory!' Elon Musk wrote in a message to Tesla workers. Tesla (TSLA) - Get Report shares rose sharply Tuesday after a reported e-mail from the electric carmaker’s CEO, Elon Musk, indicated the company may break even in the second quarter. That would be quite a feat, given the coronavirus pandemic that shut Tesla’s California plant for several weeks and depressed consumer demand. Musk sent his email, titled “Down to the last few days” to his workers Monday, Electrek reported. It read, “Breaking even is looking super tight. Really makes a difference for every car you build and deliver. Please go all out to ensure victory!” Breaking even would represent quite a performance in light of analysts’ expectations for a loss of $1.16 a share, as reported by Barron’s. Earlier this month, Morgan Stanley and Goldman Sachs downgraded Tesla, voicing concern about its lofty stock price and strained U.S.-China trade relations. Morgan Stanley analyst Adam Jonas downgraded the stock to underweight from equal-weight and cut his price target to $650 from $680. While Jonas praised Tesla for its role in accelerating the adoption of electric vehicles, he said he believed the recent run-up in the share price to over $1,000 may not reflect a number of important emerging risks. Among the many risks for Tesla, he ranks U.S.-China relations “at the very top," Goldman Sachs analysts, led by Mark Delaney, said they downgraded Tesla to neutral ...
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