But in an email to employees Musk acknowledged that Tesla’s actual profit margin is fairly low, only about 1%, and that the stock price is due to investor expectations of future profits rather than recent results.
The email was primarily focused on the importance of finding even small cost savings in the car building process.
“This a tough Game of Pennies — requiring thousands of good ideas to improve part cost, a factory process or simply the design, while increasing quality and capabilities,” Musk wrote. “A great idea would be one that saves $5, but the vast majority are 50 cents here or 20 cents there.”
Doepfner asked if Musk would consider using Tesla’s lofty stock price to buy an established automaker and although Musk said he’s not looking to do that, he wouldn’t rule it out.
“We’re definitely not going to launch a hostile takeover,” he said. “If somebody said, ‘Hey, we think it’d be a good idea to merge with Tesla,’ we’d certainly have that conversation.”
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