Elon Musk tells Tesla employees the company is 'very close to achieving profitability' after agreeing to pay SEC $20 million

Mario Tama/Getty ImagesElon Musk.

  • In a company-wide email on Sunday, Elon Musk told employees that Tesla was “very close to achieving profitability.”
  • In August, Musk told investors the company would be profitable in the third quarter. Tesla has had only two profitable quarters in its history.
  • Musk just agreed to pay the Securities and Exchange Commission $US20 million after it filed a suit accusing him of making “false and misleading” statements that affected Tesla’s stock price.

In an email on Sunday, CEO Elon Musk told Tesla employees that they had “one more day of going super hardcore” to close the quarter and that the company was “very close to achieving profitability and proving the naysayers wrong.”

Musk assured investors during a conference call in August that Tesla would turn a profit in the third quarter. The company has never turned an annual profit and has had only two profitable quarters in its history.

Here’s the full email:

From: Elon Musk Sent: Sunday, September 30, 2018 1:08:45 AMTo: Everybody Subject: One more day of going super hardcore and victory is ours!!

We are very close to achieving profitability and proving the naysayers wrong, but, to be certain, we must execute really well tomorrow (Sunday). If we go all out tomorrow, we will achieve an epic victory beyond all expectations. Go Tesla!!! Thanks for all your hard work,
Elon

Musk on Friday came to a $US20 million settlement with the Securities and Exchange Commission, which filed a lawsuit Thursday accusing him of tweeting false and misleading statements about Tesla.

The SEC accused Musk of knowingly spreading false information about Tesla to manipulate its stock price. In August, Musk tweeted that he had “funding secured” to take Tesla private at $US420 a share. He did not have funding secured, and Tesla announced a few weeks later that there would be no deal.

As part of the settlement, Musk will have to step downs as chairman of Tesla’s board for at least three years, and there will be more oversight of his communication with investors, including how he uses Twitter.

Tesla did not immediately respond to a request for comment about the email.

(If you are a Tesla employee or customer who has a story to share about a car or experience with the company, give me a shout at [email protected].)

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