Tesla’s Elon Musk Asks Workers To Help Company Break Even in Second Quarter

Tesla Inc.’s (TSLA) CEO billionaire Elon Musk is reportedly asking employees to work hard to allow the electric car maker to break even in the second quarter.

According to an internal email seen by Reuters, Musk is encouraging employees to quickly build and deliver vehicles at the end of the quarter to meet specific targets after production was disrupted due to restrictions tied to the coronavirus pandemic.

“Breaking even is looking super tight,” Musk said in the Monday email. “Really makes a difference for every car you build and deliver. Please go all out to ensure victory!”

Shares rose 5.2% to 1,009.35 at the close on Monday. The plea comes as the automaker is this week expected to release its second-quarter delivery numbers report. Analysts on average expect the company to deliver about 74,000 vehicles in the months from April to June.

Ahead of the delivery report, JMP Securities analyst Joseph Osha today raised the stock’s price target to $1,050 (4% upside potential) from $1,001 and maintained a Buy rating, saying that the consensus for Q2 unit deliveries looks “reasonable” as the strength of the China market appears to be sufficient to offset a “disastrous” quarter in the U.S. and Europe.

Osha estimates that Tesla should be able to grow its delivery volumes by 14% in 2020.

The company’s California vehicle factory was closed for more than six weeks with production disrupted from the end of March to early May due to local lockdown orders aimed at slowing the spread of the coronavirus pandemic.

In April, Tesla surprised investors when it said production and delivery of its new sport utility vehicle, Model Y, was significantly ahead of schedule despite the virus outbreak. The company delivered 88,400 vehicles in the first quarter.

Despite the disruptions, shares have this year seen a great run and have now more than doubled in value. So it is not surprising that the $733.43 average price target now implies 27% downside potential for the shares in the coming 12 months. (See Tesla’s stock analysis on TipRanks).

Overall, the stock has a Hold analyst consensus with 10 Sell ratings and 10 Hold ratings versus 7 Buy ratings.

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