Musk warns of 'very tough quarter' for Tesla

Tesla Inc. has had a “very tough quarter” as it struggles with supply-chain snags, CEO Elon Musk warned in an internal memo, imploring workers to help get the EV maker back on track.

“This has been a very tough quarter, primarily due to supply chain and production challenges in China,” Musk said in an email to employees over the weekend that was seen by Bloomberg. “So we need to rally hard to recover!”

The company’s Shanghai plant, which had slowed production in recent weeks amid severe Covid-19 restrictions, is returning to full strength and its Austin, Texas, facility is ramping up production as well, Musk said. Last week, he noted, Tesla’s Berlin factory built almost 1,000 cars, while its Fremont, Calif., plant notched a record day of production.

Musk often sends companywide emails near a quarter’s end to push staff to sprint to the finish, and Tesla is known to deliver many units in the the final weeks. In a subsequent memo, he told workers to be proud of the “great, real products” they make.

The emails of praise and encouragement are in stark contrast with internal messages the world’s richest man sent earlier this month warning of layoffs among salaried employees and his “super bad feeling” about the economy.


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