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Tesla Motors

Company

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Tesla is producer of electric vehicles

Owners:
Musk Ilon - 20%
Larry Ellison - 1,75%

Content

Revenue and Net Profit billions $

Number of employees

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Assets

Owners

+ Tesla Motors

Performance Indicators

2019: Losses — $775 million; revenue — $24.58 billion

In 2019 Tesla registered record revenue — $24.58 billion. The previous year sales were measured by $21.46 billion.

Implementation of cars at the company increased from $17.63 billion to $19.95 billion a year later. Earned $869 million in 2019 from services of leasing of Tesla and 883 million in $ by the 2018th.

In 2019 Tesla registered record revenue — $24.58 billion

At the end of 2019 Tesla sold 367.5 thousand electric vehicles it is, more, than for two previous years (this indicator corresponds to the forecast of Tesla in 360-400 thousand sold machines). In 2020 the company hopes to implement more than 500 thousand machines.

The company noted that 2019 became critical for Tesla. Hopes for further growth in Tesla are pinned on high demand on Model 3 and start of the plant in Shanghai. In 2019 Tesla also announced intention to construct the plant near Berlin. At it the company is going to open the design center.

Despite growth of revenue, also losses of Tesla increase. In 2019 they made $775 million, having decreased with $1.06 billion the previous year. Monetary losses are caused first of all by expenses on production.

After the publication of financial statements of a stock of Tesla at first grew by 2.5% to closing of the exchange, and at electronic biddings — for 11.6%, having reached $648.5. As a result the fortune of the founder Elon Musk in one hour was increased for $2.3 billion, Bloomberg notes. Growth of quotations happened thanks to record levels of revenue and deliveries of electric vehicles, adds news agency. Besides, the fact that financial performance in general appeared above expectations of Wall Street helped.

In 2019 capitalization of Tesla for the first time exceeded $100 billion. If its cost exceeds this amount within several months, the CEO of the company Elon Musk will be able to earn a reward in the amount of $346 million[1]

History

2020

Creation of insurance company

At the end of July, 2020 Elon Musk announced creation of Tesla Insurance insurance company which will select to clients an individual rate depending on style of driving. Read more here.

Tesla dismisses employees 3 years in a row

At the beginning of July, 2020 it became known that Tesla dismisses employees for three years, and such policy shook trust of many employees of the company.

In 2018 and 2019 of Tesla dismissed 7% and 9% of the labor power respectively, despite a promise of the CEO Elon Musk that the company does not intend to resort to dismissals any more. In 2019 Tesla told the sellers that it is going to close most the shops and though only 10% of outlets were closed, by the end of 2019 the staff of Tesla decreased by 800 people. Such reductions irritate the staff of Tesla who feels instability of the workplace.

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In Tesla at us over the head as if the axe hung up, - one of sellers working at the Western coast explained. - Heads can dismiss you without prior notice, and it is a fact of common knowledge.
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In March, 2020 Musk told all staff of Tesla that they can stay at home on a holiday during a pandemic. However three sellers were recognized that they worry about possible effects.

Tesla dismisses employees 3 years in a row
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Let's tell, the company should cut down the staff because of decrease in demand. I am afraid, they will prefer to leave at work of people who continued to come to the plant, even when they were threatened by danger to ache, but not those who stayed at home.
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A month later, according to CNBC TV channel, Tesla sent on leave without contents about a half of a command on sales and delivery and temporarily lowered salaries to all employees because of crisis in the automotive industry. Tesla did not respond to the request for what share of employees returned for work from an unpaid leave.

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When we had to sit in an unpaid leave, we realized that our work is actually not so stable, - the second seller working at the Western coast noted.[2]
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By the end of 2019 48,016 people were on the staff of Tesla.

Tesla dismisses the employees refusing to work at the plants because of fear of a coronavirus

At the beginning of July, 2020 several employees of Tesla accused the company of illegal actions. According to them, company executives threaten with dismissal to those employees who refuse to work at the plants in the conditions of COVID-19 pandemic because of concerns concerning the security. Though the plant in Frimonte was reopened after two-week idle time, employees noted multiple security concerns and refused to come to work then representatives of personnel department contacted them.

Tesla dismisses the employees refusing to work at the plants because of fear of a coronavirus

Earlier Tesla stated that the employees wishing to stay at home because of security concerns can take an unpaid leave. Many preferred to use this option, and now them force to return to the plant under threats.

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We pay specialists who should ensure our safety, however the existing measures insufficiently. It is time to make Elon Musk responsible, - employees of the plant consider.
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According to them, on assembly lines rules of social distancing and sanitary processing of the equipment are not followed. Besides, many employees are not masked, workers say.

Staff of Tesla Carlos Gabriel and Jessica Naro reported that representatives of personnel department of the company contacted them and suggested to return for work. Jessica Naro refused and explained that she does not want to do much harm to the six-year-old son who has problems with health. And Carlos Gabriel refused to continue a conversation when representatives of Tesla prohibited it to write a conversation. Gabriel believes that he was dismissed because of it though Tesla publicly claims that the employee did not respond to e-mails and voice messages and also did not warn the management about when returns for work.[3]

Shareholders of Tesla urge to expel Musk from Board of Directors

On July 1, 2020 it became known that the consulting company Pensions & Investments Research Consultants (Pirc) recommended to shareholders of Tesla to vote for Elon Musk's exception of the structure of Board of Directors of the automobile company. The agreement of 2018 according to which mister Musk can earn from Tesla a reward in the amount of $55 billion became an occasion for this purpose.

In the spring of 2018 shareholders of car maker approved remuneration conditions for the CEO of the company Elon Musk. Remuneration does not provide the fixed salary and bonuses, and is tied to indicators of the company. Pirc considers that that transaction "unfairly enriches the CEO". Besides, the consulting company considers that the behavior of mister Musk spoils image of Tesla and also led to multimillion losses.

It is not the first case when shareholders of the company are urged to vote against Elon Musk. So, in the middle of 2018 shareholders voted on its possible removal from a post of the chairman of the board of directors. But the majority then supported the founder of the company. In August, 2018 Elon Musk reported on Twitter that he considers the possibility of share repurchase of all stocks of Tesla for $420. In several days he refused this idea. As a result of the stock of the company at first sharply rose in price, and then fell off, having led to multi-billion losses of investors. The last as a result filed a lawsuit against Elon Musk, and the U.S. Securities and Exchange Commission (SEC) accused him of fraud. As a result mister Musk could settle regulator claims, but was forced to leave a position of the head of the Council of directors. For July, 2020 he remains the CEO of Tesla and[4].

Dismissal of employees also reduces salaries by 30%

On April 7, 2020 it became known of dismissals and salary reduction in Tesla. The American producer of electric vehicles is forced to take these measures because of a pandemic of a coronavirus of COVID-19 which led to closing of the plants.

On March 24, 2020 Tesla closed the enterprise for assembly of machines near San Francisco and factory on production of solar panels in New York. Since April 13 the company will begin to reduce salaries to the employees. In the USA ordinary workers will receive 10% less former, directors — for 20%, vice presidents — for 30%, Reuters with reference to the office letter which was sent by the head of Tesla personnel department Valerie Capers Workman reports.

It became known of dismissals and salary reduction in Tesla

Staff of the company who cannot work from the house will be sent on an unpaid leave. According to Vorkman, decisions on reduction of number of staff and salaries are accepted within measures for cost management and achievement of long-term plans. Tesla hopes to resume production of cars by May 4, 2020.

The example of Tesla shows that the pandemic of a coronavirus led to reduction in demand for cars in the USA, having forced car makers to send workers on leaves without preserving of salary.

More than 10 thousand people work at the American plant Tesla which in 2019 produced about 415 thousand cars by the beginning of April, 2020. Production suspension negatively affects plans of the company to increase production of the sports Tesla Y model, demand for which, according to forecasts of the head of Tesla Elon Musk, should exceed demand for other models combined, Reuters reports.

In March, 2020 the company warned that at it insufficiently working capital for overcoming crisis. By the end of the third quarter 2019 Tesla had $6.3 billion own money.[5]

Tesla will cut down 92 hectares of the wood for construction of the plant near Berlin

In February, 2020 the Supreme administrative court of Berlin and Brandenburg (OVG) rejected the claim submitted by ecoactivists in which they asked to block construction of future plant Tesla near Berlin. Authors of the complaint were dissatisfied with the mass deforestation begun by the company.

A claim against the company was submitted by the Green League of Brandenburg organizations and Association for protection of a landscape and biodiversity of Bavaria. The ecological organizations claimed that deforestation, necessary for construction, threatens the local nature and can lead to pollution of reservoirs.

View of the forest area which cuts down Tesla for construction of the plant

After a rejection of the claim (the final decision is also not subject to the appeal) Tesla could continue deforestation. In total the producer of electric vehicles is going to liquidate about 92 hectares of the forest area. The area of all land plot purchased the company under construction of the enterprise is about 300 hectares.

Investments into the project are estimated at 4.4 billion euros. At the plant it is going to market electric cars and rechargeable batteries for them. Number of staff at the enterprise at first will be 3 thousand people, and finally - 7 thousand.

Earlier the CEO of Tesla Elon Musk  claimed that Gigafabrika in Germany will not spend a lot of water. According to him, the wood which needs to be cut down — "not natural", he was put for cardboard factory. The car maker  also promised that he will move bats, reptiles and colony of ants which construction will affect.

The judge of administrative court of Frankfurt an der Oder who the first considered case originally made the decision against two ecological groups, but permitted to appeal against the resolution in OVG. The Supreme administrative court of Berlin and Brandenburg  explained the solution  with the fact that Tesla managed to prove "legal requirements for the fastest beginning of construction of the plant"[6]

2019

Only 192 thousand cars in the USA are sold. Capitalization of $103 billion

Tesla cracks phones and computers of employees for shadowing them

At the beginning of March, 2019 the former employee of Tesla accused the company that the management cracks phones and computers of workers for shadowing them.

Sean Gouthro, the former employee of department of security of Tesla, sent the complaint to the U.S. Securities and Exchange Commission (SEC). Its indications confirm information provided in August, 2018 by Karl Hansen, one more former employee of Tesla.

In the statement of the Meissner Associates law firm representing Hansen's interests it was said that Tesla did not inform intelligence agency on drug trafficking in the company and also on cracking of mobile phones and computers of employees for the purpose of unauthorized observation. Affirmed that the company installed the specialized routing equipment intended for data collection from personnel devices. At that time the U.S. Securities and Exchange Commission and the Anti-Drug Office refused comments.

At the beginning of March, 2019 the former employee of Tesla accused the company that the management cracks phones and computers of workers for shadowing them

Gutro also confirmed statements that Tesla interfered with internal investigation into the case of theft of raw materials for $37 million at the Gigafactory plant where li-ion cells are made for electric vehicles. According to him, the company interfered with disclosure of these and other illegal actions to the authorities and shareholders. According to Gutro, Elon Musk gave "the false and misleading statements" concerning investigation. Legal procedure of SEC led to settlement which demanded that Musk left a post of the chairman of the board of directors of Tesla for three years and paid a penalty.

The representative of Tesla denies Gutro and Hansen's claims. He noted that Gutro's charges are not true and are directed only to drawing attention of mass media. The representative of the company also reported that Gutro was dismissed from Tesla in January, 2019 for inefficiency and for repeated violations of security.[7]

Reduction of 7% of the state

On January 18, 2019 Tesla Motors announced reduction of number of staff for 7% therefore works will lose more than 3 thousand employees. The company optimizes expenses within expansion of production electric vehicles Tesla Model 3 and aims to offer them to the affordable prices.

As the founder and the CEO of Tesla Elon Musk in the letter wrote to employees, 2018 for the company at the same time became the heaviest and the most successful in the history. The staff of car maker grew by 30%, but it is more, than the company is able to afford.

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Despite great success, our products still are too expensive to most of people … There is a set of the companies with the best ratio "life/work" because they it is more and work in the mature industries or where there is no such injurious competition — Musk reported.
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According to him, Tesla needs money for production process improvement to sell standard Model 3 at  the price of $35 thousand for unit and to save profitability.

Musk expressed the need to provide deliveries of the electric vehicle Model 3 to all markets of presence by May, 2019. The need for inexpensive versions of the electric vehicle should increase by July 1 when tax benefits in the USA for buyers of electric vehicles are cut by half.

The statement for mass layoffs brought down the quotations of Tesla: to closing of the exchange on January 18, 2019 stocks of the company fell in price by 13%, up to $302.26.

Meanwhile, the CNBC TV channel announced possible financial difficulties of Tesla. On March 1, 2019 the repayment period of convertible  senior  bonds at the converting price in $359.87 for an action expires. If the quotation rate of Tesla is above this mark, then the debt will be converted into actions, and otherwise the company should repay the debt from own means. By the end of September of the 2018th Tesla had about $3 billion own means.[8]

Larry Ellison owns 1.75% of stocks of Tesla for $1 billion

In January, 2019 the size of a share of Larry Ellison in capital stock of Tesla Motors became known. According to the documents published by Securities and Exchange Commission, the founder of Oracle possesses 3 million stocks of the American producer of electric vehicles that corresponds to a 1.75 percent share. By January 8, 2019 the cost of this packet is estimated more than at $1 billion Read more here.

2018

Losses — $1.06 billion; revenue — $21.46 billion

In 2018 revenue of Tesla Motors made $21.46 billion, having almost doubled concerning the 2017th. Sales of electric vehicles at the company jumped up from $8.53 billion to $17.63 billion.

Income from services of leasing decreased — from $1.11 billion in 2017 to $883.5 million a year later. The company earned $1.56 billion against $1.12 billion from sale of power stations the previous year. Services and other sources of income brought to Tesla a total annual turnover in the amount of $1.39 billion.

Financial performance of Tesla

Tesla remains unprofitable car maker, however monetary losses decrease. If in 2017 they were measured by $2.24 billion, then in the 2018th net losses made $1.06 billion. The company spends a lot of money for researches, developments and production. In 2018 total expenses of Tesla exceeded $4.04 billion.

Despite losses and big costs for business development, corporate expenses on Elon Musk remain high. For example, in 2018 Tesla spent $700 thousand for flights of the founder and the CEO by the private airplane, including on the personal purposes. The company explains that Musk's movements are "an integral part of business".

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Unfortunately, while we cannot teleport, for it there is no other method  to do the same the work effectively  — the representative of Tesla Dave Arnold said.
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Elon Musk called 2018 the worst in the career and "painful". According to the entrepreneur, he grew old for five years, worked seven days a week and slept till several hours.

For 2018 Tesla delivered in total  245,240 electric cars, including  145,846 copies of Model 3 and 99,394  of the Model S sedans and the Model X crossovers. The company as she notes, in 2018 managed to release almost as much electric cars how many it shipped for previous years combined.[9]

Larry Ellison entry into Board of Directors of Tesla

On December 28, 2018 it was announced entry of the founder of Oracle Larry Ellison into the structure of Board of Directors of Tesla Motors company. The producer of electric vehicles fulfilled the requirement of the U.S. Securities and Exchange Commission (SEC) within claim settlement. Read more here.

The domain name of tesla.com was purchased for $11 million

As reported Online Domain on December 9, 2018, Elon Musk, the cofounder and the CEO of Tesla, at last disclosed the acquisition value of domain name of Tesla.com in February, 2016. As he wrote on twitter, on purchase of Tesla.com from it more than 10 years, 11 million dollars and the unimaginable number of efforts" left ".

As it appears from other tweet of Elon Musk, the Tesla company could be called Faraday, and the trademark of Tesla Motors was not thought up by Musk: it was purchased at the end of 2004 at a certain Brad Sivert for 75 thousand dollars.

The domain name of tesla.com was purchased for $11 million. Photo: glavred.info

After obtaining Tesla.com Musk at last could change the company name to Tesla. Before Musk had to use the address Teslamotors.com for the company that, according to him, was represented extremely inconvenient, first of all, because of much wider profile of activity of the company. In 2016 the problem was solved.[10]

Elon Musk at the same time did not tell the name of the previous owner of Tesla.com, but, most likely, the engineer from Silicon Valley and Nikola Tesla's fan Stu Grossman was him. The domain Tesla.com belonged to Grossman since 1992, and till 2016 when the name Tesla.com passed to Elon Musk, the domain was not used, Online Domain writes.[11]

Stocks of Tesla fell off after Musk smoked marijuana on the air

In the evening on September 6, 2018 Elon Musk, the CEO of Tesla company, smoked marijuana on the air that caused the collapse of stocks of the company in the morning on September 7 for 9%.

Elon Musk became the guest of a podcast of Joe Rogan Experience and discussed with conducting a wide range of subjects, including the behavior in Twitter, flame throwers of his The Boring Company and the device of "neutron communication" which could tie a brain of the person with the computer. Having noticed that the leader dragged on a cigarette with marijuana, Musk was surprised and asked what occurs. In reply the leader suggested it to make tightening. Musk agreed, previously having specified whether it is legal in the State of California.

Let's note that in California and in several more states use of marijuana in the weakening purposes is legalized. Under the law inhabitants are more senior than 21 years have the right to store approximately up to 30 grams of drug. However marijuana is still prohibited in the territory of other states according to the federal law of the USA.

In the code of business behavior and ethics of Tesla it is specified that the staff of the company is forbidden to work, being under the influence of psychoactive substances and alcohol. Whether Musk represented Tesla as the head on the air – the matter of argument, however, according to xxThe New York Times (NYT)|The New York Times]], members of council of Tesla are also concerned by behavior of the CEO, in particular his consumption of marijuana and alcohol "in the weakening purposes".

Elon Musk smokes marijuana

Also it became known that the U.S. Air Force can deprive of the founder Elon Musk of access to classified government information. As his SpaceX company is engaged in space starts by request of state company, Musk had access to not disclosed data. Now the Defense Ministry studies a situation, however investigation meanwhile was not started.[12]

Buffett dissuades Apple from purchase of Tesla

At the end of August, 2018 Warren Buffett urged Apple to refuse possible purchase of Tesla Motors as, according to the billionaire, this transaction is senseless, the leader in the automotive industry to be more difficult, than in IT. Read more here.

Tesla desperately asks suppliers to return a part of money

In July, 2018 it became known that Tesla Motors began to ask the suppliers to return a part of money under contracts. The American producer of electric vehicles which is in a difficult situation expects support of partners at the crucial moment.

The letter sent to Tesla to one of suppliers was at disposal of the The Wall Street Journal newspaper. In it the carmaker asks the contractor to return a considerable part of the payments made since 2016.

Tesla Motors began to ask the suppliers to return a part of money under contracts.

It is said in the statement that Tesla addressed all suppliers that those helped the company to become profitable. About what number of contractors and the amounts of a cashback there is a speech, it is not specified.

Tesla refused to comment on the letter which became property of the public. But in the company confirmed that asked suppliers to reduce the prices on  projects  which part are begun in  2016 and  a part of  which  is not completed by July, 2018. Tesla also noted that such request — a standard part of negotiations in the field of the deliveries directed to  improvement of competitiveness, especially  in the light of increase in release of Model 3 electric cars.

The production consultant Dennis Virag considers that the financial risk for  suppliers can represent requirements about return of means which were imposed by Tesla and   threaten further deliveries of component parts.

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It is absurd and  shows that Tesla now in  despair. They are concerned by the profitability, but  to them to spit on  profitability of their suppliers — the expert specified.
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Earlier the head of Tesla Elon Musk called the main condition of return to profitability of the company release more than 5 thousand copies of Model 3 a week. It was succeeded to achieve such production volume of the company in a horse of June, 2018.[13]

Reduction of 9% of the state in attempt to return to profit

In June, 2018 Tesla announced a personnel decrease approximately for 9% for the purpose of cost reduction and reaching break-even level.

Within reorganization the American company will dismiss more than 4 thousand people. As the founder and the CEO of Tesla Elon Musk in the electronic message sent to employees told, reductions will concern all divisions, but will not affect the workers who are engaged in assembly of cars.

Tesla will lay off 9% of employees for reduction of expenses

For the 15-year history Tesla never got annual profit. The inability of the company to generate a free cash flow and also lack of progress in achievement of the production purposes drew special attention of analysts and investors.

Musk also connected dismissals with the solution not to prolong the contract with retail network of building materials Home Depot and concentration of efforts on projects in the field of solar power. Besides, in Tesla a large number of working positions which duplicate each other accumulated.

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We made the decision, critically estimating each position and that, it is how possible to perform this work more effectively. Besides, we estimated capabilities and skills of each employee of the company — Elon Musk reported.
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He also assured that dismissals on will influence achievement of goals on production electric vehicles Model 3. In a week until the end of June, 2018 Tesla is going to produce 5 thousand copies of Model 3. Before the company postponed the date of the beginning of serial production of the machine more than once that negatively affected the quotations of the producer.

For the 12-month period which end fell on June 12, 2018 stocks of Tesla fell in price by 8.8%. On June 12 securities rose in price for 3.2% after Musk's statement for dismissals.

By the end of 2017 in the company about 37.5 thousand people worked, and at the beginning of the 2018th about 8 thousand more workers were employed.[14]

Tesla loses $6500 every minute. The end is close?

In May, 2018 it became known, how fast Tesla loses money because of problems with production and sales of electric vehicles.

By estimates of analysts of Moody's Investors Service  believe, funds for existence even until the end of 2018 can not be enough Tesla. They counted that the company spends about $500 million for half a year only for support of an operational part of business.

According to calculations of observers  of Bloomberg, every minute Tesla loses about $6500. In case of preserving of such negative dynamics at the company money for several months can end.

Change of a free cash flow of Tesla, data of Bloomberg

In  the publication  of Bloomberg the online counter which shows how many money of Tesla "burned down", since that moment as the user began to read material is installed. By May 14, 2018 the amount, a component about $1.1 million was gathered.

By the end of 2017 Tesla had about $3.4 billion cash in a free cash flow, and debts of the company made $9.4 billion. Many respondents the edition analysts believe that soon Tesla is required a new loan.

Dynamics of change of long-term loans of Tesla, data of Bloomberg

To have a stock of means in $1 billion, the American producer of electric cars needs to sell shares for the amount of $3 billion until the end of 2018 and to attract $2 billion more in 2019, the analyst of Cowen & Co John Osborne says.

Heavy debts lead to payment of huge percent: only in the first quarter 2018 Tesla paid them in the amount of $146 million that approximately corresponds to similar expenses of General Motors — the company exceeding Tesla on revenue more than by 10 times.

Revenue of the companies counting on one employee, data of Bloomberg

Big item of expenditure are the personnel. If in 2010 in Tesla only 899 people worked, then eight years later the state grew to 40 thousand people. From 2014 to 2017 the number of workers in the company trebled, and revenue counting on one employee remained at the same level — about $500 thousand a year. At General Motors and Ford Motor this indicator is 2.5 times higher.[15]

Mining at capacities of the company

On February 21, 2018 it became known that hackers used capacities of Tesla for production of cryptocurrency. It became possible thanks to cracking of a cloud system of the producer of electric vehicles.

As reported in the RedLock company specializing in cyber security, the open source code system of Kubernetes which is used for management of applications became a source of vulnerability. According to experts, the account of Tesla in Kubernetes was not password-protected and it contained data for access to the cloud storage of the company to Amazon Web Services (AWS).

Hackers hacked the account of Tesla in a cloud of Amazon and mined bitcoins at capacities of car maker

Hackers used capacities of Tesla for mining of bitcoin, previously having built the advanced system of protection that they could not be found as long as possible. So, the special software hidden through CloudFlare that allowed to disguise the server IP address about mining pool of malefactors was set. Besides, swindlers did not allow a heavy load on processors during mining not to draw attention.

Important telemetered informations of the Tesla cars are stored in a cloud of AWS, but in the company claim that an incident did not affect confidentiality of clients and security of machines. Vulnerability is eliminated.

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We carry out the program for remuneration for the detected vulnerabilities to support similar researches. This gap was eliminated in several hours after she became known. Most likely, only the data of internal use connected with development of test cars were compromised — said in Tesla.
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Earlier the British insurance company Aviva and the large producer SIM- cards underwent a kriptodzheking using Kubernetes Gemalto. Hackers also used their public cloud storages for mining.[16]

Payroll plan of Musk

The Tesla company unveiled the plan of payment of remuneration to the CEO Elon Musk at the beginning of 2018. According to this plan, Musk will receive nothing if the company does systematically not increase the cost. Remuneration will only be paid to the CEO when capitalization of Tesla overcomes the next boundary[17].

The ultimate goal of the company — to reach capitalization in $650 billion that will make it one of five largest corporations in the USA. For this purpose Tesla should overtake Amazon which cost is about $640 billion. Capitalization of Tesla makes about $59.4 billion. It is more, than at Ford which costs $47.7 billion, but it is less than at General Motors which is estimated at $61.5 billion.

Effective objectives

Musk will earn the first reward after capitalization increases up to $100 billion Daley to it the fee for increment of each new $50 billion will be paid. Having overcome the next mark, Musk will receive 1.69 million shares of the company, i.e. a share approximately in 1%. If effective objectives are not achieved, the head of the company will not receive anything even if capitalization will grow, just more modest rates, for 80-90%. According to the legislation of the State of California, at all the company cannot pay anything to the employee therefore the minimum wage of about $37 thousand a year will be paid to the CEO.

Tesla not for the first time concludes the arrangement on deprivation of salary with Musk. The similar plan was approved in 2012, however, the purposes were not such ambitious. From the purposes which then were planned Musk reached all, except one operational indicator. Tesla claims that tactics helped it to increase capitalization by 17 times for the first five years of existence. As a result Musk at the moment possesses a 13-billion share in the company. He assures that within 10 years it is possible to increase capitalization of Tesla to one trillion dollars.

2017

Record losses — $2.2 billion

In 2017 Tesla Motors received a record loss because of expenses on production of the electric vehicle Model 3.

For the 12-month reporting period which end fell on December 31, 2017 net losses of Tesla increased to $2.2 billion from $773 million the previous year. At the same time revenue of the company rose by 55%, having reached $11.8 billion.

One of the reasons of growth of turnover in Tesla call sales increase of the Model X crossovers. In the report of the company at the same time it is noted that increase in deliveries of the Model 3 sedans up to 2500 pieces a week is postponed at least until the end of the first quarter 2018.

Expenses on production Model 3 led to huge losses of Tesla

Assembly of Model 3 began in July, 2017, however because of production difficulties the company cannot come for mass release of cars in any way. Because of additional expenses losses of Tesla grow. The company hopes that by the end of the second quarter 2018 will roll about 5 thousand Model 3 a week off the production lines.

The company also limited production Model S and Model X to 22,137 copies, having explained it with redistribution of production resources for benefit of Model 3.  The chief  financial officer Deepak Ahuja noted that more than a half of expenses of the company was the share of Model 3 that emphasizes importance of the project and need of big investment into it.

In 2017 Tesla delivered more than 102 thousand cars at planned 100 thousand. Car sales brought the companies of $8.5 billion revenue against $5.6 billion in the 2016th. Income from services of leasing exceeded $1.1 billion. About the same the American car maker earned from sale of power stations.

In the financial statement it is also said that by the end of 2017 the number of stations for recharge of cars at Tesla reached 1128 that is 338 more, than the previous year. The number of the dealer centers was 330 worldwide.[18]

Elon Musk appeared on a threshold of financial crash

In November, 2017 the producer of the most raspiarenny electric vehicle Tesla reported on record quarter losses. Together with statements of the American government for fast canceling of privileges for electric vehicles it caused panic at the exchanges and falling of share value of the group belonging to the American billionaire Elon Musk[19].

The period was from June 30 to September 30, 2017 failure for Tesla. Losses of the producer of electric cars reached record 670 million dollars.

The company explained it with difficulties with production of the new machine Model 3: promises to release by December of 20 thousand these machines, apparently, will not manage to be constrained, for the beginning of October rolled only 260 units off the production line.

Tesla explains that do not allow to collect new model in the stated volumes Gigafactory enterprise capacities in Nevada where for it manufacture rechargeable batteries.

The problem was promised to solve within the coming months, and by March, 2018 to bring production Model 3 to five thousand units a week.

The Republican Party in the USA supported by the president Donald Trump actively presses through reform of the tax law which will deprive of privileges of producers of electric vehicles. It can seriously strike at car sales with the electric drive, including Tesla.

Elon Musk's companies would all the same be ruined without support of the state. Tesla Motors belonging to it, SolarCity and SpaceX at the expense of different programs of state support received about 4.9 billion dollars. And it means that the public-private partnership in which the state quite often acts as the donor is a basis of the business empire of the entrepreneur.

In Hong Kong sales of Tesla failed right after tax refund on registration of electric cars. The similar situation was observed in 2016 in Denmark: there the number of the registered electric cars was reduced by 70 percent after program termination of stimulation of demand for electric vehicles.

In November, 2017 media were flown by a joke of the famous financial analyst Frank Schwope from German bank NORD/LB. "You should wonder that will occur earlier: Elon Musk will fly to Mars from SpaceX, or it will manage at last Tesla profitably". The analyst doubts that the company will perform the sales plans of 500 thousand cars in 2018. As well as other experts, Schwope expects reaching of Tesla profitability not earlier than 2020[20].

Legal claim

At the end of January, 2017 the Tesla company submitted a claim against the former head of department on development and creation of an auto pilot Sterling Anderson. The company accused him of theft of confidential information for use in own startup and attempts to entice to itself the staff of Tesla. The codefendant in the claim specified Anderson's partner Chris Urmson who headed the project of Google on creation of unmanned vehicles earlier.

2016

Tesla is more expensive than General Motors

At the end of 2016 Tesla came out on top in the world on capitalization among car makers — i.e. in the market the company is more expensive than GM. At the same time Tesla has 18 thousand workers, and at GM — 215 thousand, Tesla sold in 2016 100 thousand cars, and GM — more than 3 million only in the USA.

Asset cost, i.e. the plants and other property, at Tesla is estimated at 4.3 billion dollars while at GM — in 44 billion.

Loss and leaving of Toyota

The Japanese carmaker at the end of last year sold shares of the developer of electric vehicles. According to the representative of Ryuo Sakai carmaker, the period of active cooperation with Tesla already in the past, and without the new ideas and developments it is unpromising. Toyota Motors acquired 3.14% of shares of Tesla in 2010, having spent for them $50 million. And 2014 Japanese began to reduce gradually a share block and the equity participation of Elon Musk's company. In 2016 the remained share block was estimated at $480 million.

2016 yielded to Elon Musk's company a loss in $675 million. Net loss of the company for the first half of the year 2016 increased almost by 70% in comparison with the same period of 2015 and made $575.4 million. This fact does not stop Musk from promises to investors of "a fast exit" in profitability. The businessman confirmed the forecast of delivery of nearly 80 thousand machines in 2016. Earlier in plans of the company it appeared on 10 thousand cars more — 90 thousand pieces[21].

Despite losses and still not met expectations of investors, cars of the company will continue to attract interest of public and media due to the successful PR-strategy, correctly selected marketing solutions and dreamers ready to pay for new Tesla, even without knowing specific terms of its entry into the market.

Elon Musk's business in addition to the electric vehicles Tesla includes the SolarCity project. At the expense of focus on environmental friendliness the entrepreneur can receive subsidies and the support of the state directed to stimulations of projects on decrease in emissions of a carbon dioxide gas and transition to renewable energy sources. At a meeting of the management of SolarCity with shareholders Elon Musk announced creation of a roof which completely consists of solar panels for electricity production. Musk specifies that it is not just solar panel, but the whole roof — the solar panel[22]. The transaction on merge of SolarCity and Tesla it was announced on August 1, 2016, and this acquisition ideally fits into the main idea a Master Plan Part Deux Mask ("The master plan, Part second"). According to the plan, Musk wants to create vertically integrated company which makes electric vehicles, batteries for accumulation of energy and reduction of these cars in the movement and also solar panels for generation of energy.

According to data of SolarCity, annually in the USA 5 million new roofs of houses are established. According to the head of SolarCity Lyndon Rayva, the problem of use of classical solar panels in houses is in what before repair and replacement of a roof of a panel should be dismantled. He added that it serves as the reason that many refuse to pass to this renewable type of the electric power. If the roof consisting of solar panels which can produce electricity without the need for installation of panels is presented at the market, then it will induce people to pay attention to solar energy. Selecting between a normal roof on which it is necessary to put separately panels, and "a solar roof" which develops energy, the choice, according to Musk and Rayva, it is obvious.

Robotics



Notes

  1. Q4 and FY2019
  2. Tesla salespeople say years of layoffs and furloughs have made them doubt their job security
  3. Tesla accused of threatening to fire employees who do not return to work
  4. board member Aktsionerov of Tesla urge to expel Musk from Board of Directors
  5. Tesla to furlough workers, cut employee salaries due to coronavirus
  6. of Tesla's Berlin Gigafactory is back on track following environmental challenge
  7. A former Tesla employee has filed a whistleblower tip with the SEC corroborating a claim that the company hacked employee cellphones and computers
  8. Tesla has of $920 million in debt that’s coming due — and it could wipe out a large chunk of the company’s cash
  9. Tesla Fourth Quarter & Full Year 2018 Update
  10. The DOMAIN NAME of TESLA.COM was PURCHASED FOR 11 MILLION DOLLARS
  11. Elon Musk paid of $11 million to purchase the domain name Tesla.com
  12. Elon Musk may have violated Tesla's business conduct policy by smoking weed
  13. Tesla Asks Suppliers for Cash Back to Help Turn a Profit
  14. Tesla cuts 9 percent of workforce in search for profit
  15. Tesla Does not Burn Fuel, It Burns Cash
  16. Hackers hijack Tesla’s cloud system to mine cryptocurrency
  17. of Tesla left Elon Musk without salary
  18. Tesla Fourth Quarter & Full Year 2017 Update
  19. Elon Musk it appeared on a threshold of financial crash
  20. Tesla left Elon Musk without salary
  21. From another Tesla: As Elon Musk continues to draw attention to Tesla
  22. Elon Musk became closer to the sun