But in an email to employees, Musk acknowledged that Tesla’s actual profit margin was very low, about 1%, and that the share price was due to investors’ expectations of future profits rather than recent results.
Email was primarily focused on the importance of finding small cost savings in the car building process.
“It’s a tough game penny – part cost when increasing quality and capabilities, thousands of good ideas needed to improve a factory process or design,” Musk wrote. “One great idea is to save $ 5, but most are 50 coins or 20 coins here.”
Dupfner asked if Musk was considering using Tesla’s high share price to buy the established automaker, and although Musk said he did not want to do so, he would not dismiss it.
“We’re definitely not going to start a hostile trend,” he said. “Hey, if someone said it would be a good idea to merge with Tesla, we would definitely have that conversation.”