Elon Musk: Tesla Is a Victim of Sabotage

Muriel Colon
June 20, 2018

Oppenheimer, like other big name firms including Goldman Sachs and UBS, sees Tesla needing to raise money soon, something Musk has repeatedly said the company will not do.

Tesla is still investigating the full extent of his actions, however, the email made it clear that what the company did know about the employee's actions thus far made them "pretty bad".

Musk had long promised to ramp up production of the Model 3 to 5,000 cars a week, but had been challenged by shortages of batteries, malfunctioning robots, and a lack of space in the sprawling Fremont factory.

Reuters and CNBC each obtained a copy of a memo that the Tesla CEO reportedly sent to all staff on Sunday night under the subject line "Some concerning news". The company sued a former oil-services executive in 2016 for impersonating Musk in an email to former Tesla CFO Jason Wheeler. Musk says this was the right move, "in light of these actions".

As CNBC reports, Musk sent out an email to all employees explaining that one employee had been discovered performing sabotage on Tesla's operations.

These, in Musk's words, include "Wall Street short-sellers, who have already lost billions of dollars", "oil and gas companies", as well as "big gas/diesel vehicle company competitors".

"Most of the time, when there is theft of goods, leaking of confidential information, dereliction of duty or outright sabotage, the reason really is something simple like wanting to get back at someone within the company or at the company as a whole. Occasionally, it is much more serious". Musk said the fire could just be a "random event", but quoted businessman and engineer Andrew Grove's famous line that "only the paranoid survive". "Please be on the alert for anything that's not in the best interests of our company".

Last week, Elon Musk announced that the company would be letting go around 9% of its workforce as part of a "reorg".

In this Sunday, May 27, 2018, photo a pair of 2018 Model 3's sit at a Tesla dealership in Littleton, Colo.

Musk said the reorganisation did not affect hourly-paid assembly-line employees and was not expected to delay manufacturing targets.

But documents the company filed days later with the state of California show that more than 400 workers will be terminated at its Fremont factory, including dozens of directors, managers, technicians and other workers in manufacturing, engineering and quality inspection.

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