Published: Tue, June 19, 2018
Markets | By Otis Pena

Elon Musk says Tesla factory was sabotaged by disgruntled employee

Elon Musk says Tesla factory was sabotaged by disgruntled employee

"As you know, there are a long list of organizations that want Tesla to die", Musk wrote, saying they included Wall Street short-sellers, oil and gas companies, and auto company rivals but naming none.

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 auto company competitors".

Musk's email asks staff to be "extremely vigilant", particularly as Tesla increases the production rate of the Model 3 to 5000 per week. Last week, Tesla announced a broad restructuring, slashing at least 9 percent of its workforce. More than 3,000 workers lost their jobs, and notices filed with the state of California revealed that over 500 employees in Fremont and Palo Alto were dismissed.

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

Tesla said the vehicle fire was an "extraordinarily unusual occurrence". "Please be on the alert for anything that's not in the best interests of our company".

Musk did not specify to whom he was referring.

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

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Trump had already warned at the time of "additional tariffs" should Beijing hit back with tit-for-tat duties on American goods. Trump also promised to keep upping the ante if China retaliates to his latest action. " This is unacceptable ", Mr.

Tesla can ill afford manufacturing setbacks now.

CNBC confirms that many employees from different divisions of Tesla have confirmed receiving such an email from the CEO.

Driving this point home, CNBC also reported that on Monday morning he sent out a second memo regarding a small but "strange" fire that had broken out Sunday night on a production line, but was quickly extinguished.

The following day, Musk went after Tesla short sellers on Twitter, telling them they have about three weeks to cover if they don't want to lose money.

Nancy Tengler, chief investment officer at Heartland Financial, said her firm doesn't own Tesla stock, but she remains "highly amused" by Musk's tweets.

Blaming "some duplication of roles and job functions" that have emerged as the company has expanded, Musk said Tesla would be "evaluating the criticality" of each position, "assessing the specific skills and abilities of each individual in the company".

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