While analysts on average project Tesla will lose nearly $2 a share on a GAAP basis this quarter, higher-than-projected vehicle deliveries would make profitability a "less radical" idea, Dan Levy, a Credit Suisse analyst, wrote in a report Monday.
"Breaking even is looking super tight", Musk wrote in an email to employees obtained by the blog Electrek.
The electric auto and solar panel company is cranking out the new Model Y smaller SUV as it tries to break even or make money. The company delivered 88,400 vehicles in the first quarter.
The company is gunning for inclusion on the S&P 500, which requires a minimum of four consecutive quarters of profitability. Tesla has been profitable in its last three quarters.
Tesla is trying to avoid a quarterly loss despite its Fremont, California, factory being shut down for almost two months due to coronavirus restrictions. Tesla and Musk clashed with officials over the restrictions and resumed vehicle production shifts the second week of May, days before the county would green light the company's "site-specific plan" to allow employees back at work. In the tent, known as GA4 (or General Assembly 4) workers make cars with more manual processes, rather than the sophisticated robotics and extensive automation they use in an indoor part of the plant.
Tesla in April surprised investors when it said production and delivery of its new sport utility vehicle, Model Y, was significantly ahead of schedule despite the virus outbreak. Really makes a difference for every auto you build and deliver. "Please go all out to ensure victory!"