Tesla (NASDAQ: TSLA) CEO Elon Musk said the company needs to focus on profits or warns that shares will fall like 'souffle under a sledgehammer', electrek reported. Musk said while the stock is at news highs, the notion that spending carefully is not important is "definitely not true."

The CEO admitted that Wall Street is giving the company a lot of credit for future profits. However, if at any point they conclude that’s not going to happen, "our stock will immediately get crushed like a soufflé under a sledgehammer!"

The full Musk e-mail, according to electrek:

At a time like this, when our stock is reaching new highs, it may seem as though spending carefully is not as important. This is definitely not true.

When looking at our actual profitability, it is very low at around 1% for the past year. Investors are giving us a lot of credit for future profits, but if, at any point, they conclude that’s not going to happen, our stock will immediately get crushed like a soufflé under a sledgehammer!

Much more important, in order to make our cars affordable, we have to get smarter about how we spend money. This a tough Game of Pennies – requiring thousands of good ideas to improve part cost, a factory process or simply the design, while increasing quality and capabilities. A great idea would be on that saves $5, but the vast majority are 50 cents here or 20 cents there.

In order to make the electric revolution happen we much make electric cars, stationary batteries and solar affordable to all.

Thanks and great working with you as always,
Elon

(LINK)