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Elon Musk Slams Tesla Contractors

Musk

The push to make Tesla’s production more efficient amid record losses and high cash-burn rate has led to Elon Musk telling employees that individual contractors working for the EV maker would be denied access to Tesla’s factories and facilities worldwide, if a Tesla employee hasn’t vouched for their excellence and trustworthiness.

In a memo sent to employees and obtained by Electrek, Musk wrote:

“Please note my comment below about contractor companies and consultants. I extended the performance evaluation deadline to provide more opportunity to demonstrate excellence, but now time is up. Please send a note to HR before Monday justifying the excellence, necessity and trustworthiness by individual (not just the contractor company as a whole) of every non-Tesla person who has badge access to our buildings or network access to our systems. By default, anyone who does not have a Tesla employee putting their reputation on the line for them will be denied access to our facilities and networks on Monday morning. This applies worldwide.

Time to scrub off the barnacles.

Thanks, Elon”

Tesla reported last week another record loss, albeit smaller than expected, but its stock took a hit after Musk snubbed several analysts at the conference call that some analysts described as one of the most bizarre calls.

On that call, Musk said that Tesla would start to review the third-party contracting companies because their number “has really gotten out of control.” Related: Markets Soaring Alongside Oil Prices

Musk also reiterated his view that Tesla would be cash positive in Q3 and Q4 and that a sort of reorganization is coming this month.

“I’m feeling quite confident about achieving GAAP net income and positive cash flow in Q3. This is not a certainty, but it does appear quite likely in my view. We are going to conduct a sort of reorganization, restructuring of the company this month, and make sure we’re well set up to achieve that goal. And in particular, the number of sort of third-party contracting companies that we're using has really gotten out of control, so we're going to scrub the barnacles on that front. It's pretty crazy. We've got barnacles on barnacles. So there's going to be a lot of barnacle removal,” Musk said.

By Tsvetana Paraskova for Oilprice.com

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