Elon Musk Calls for 'Radical Improvements' at Tesla to Hit Quarterly Targets

Kimbal Musk

GettyKimbal Musk the younger brother of Elon sits on the board of Tesla

Tesla Inc (TSLA.O) Chief Executive Elon Musk accused an employee of "extensive and damaging sabotage" to the company's operations in an email sent on Monday to company employees.

Despite this, Tesla now remains one of the most shorted stocks on the market with many claiming that the company will be unable to raise the billions in capital that it needs to reach its future goals.

According to Musk's email, the unnamed employee claimed he had become disgruntled after failing to receive a promotion.

In the memo, Musk offered no evidence nor implied such about outside involvement, but did note, "We need to figure out if he was acting alone or with others at Tesla and if he was working with any outside organizations".

Musk wrote of his suspicions that another company may have been involved in the alleged sabotage, saying "there are a long list of organizations that want Tesla to die".

The Electrek blog, which covers electric cars and other alternative transportation industries, said on Saturday that Musk told Tesla employees that the company is now producing 3,500 Model 3 cars a week and that he intends to stay "almost 24/7 for the next several days" at Tesla's Fremont plant to ensure any remaining production bottlenecks are eliminated.

He characterized the fire as "another unusual incident that was hard to explain" and suggested it may have been deliberate. In an annual shareholders meeting earlier this month, Musk stated that it was "quite likely" that Tesla would hit their Model 3 production rate of 5,000 cars a week "by the end of this month". Musk said the investigation into the incident would continue this week.

The accusations of sabotage come a week after Musk announced layoffs for 9 percent of the company's workforce.

It will be interesting to see if this leak has any actual effect on the company as it pushes towards its goal of 5,000 Model 3's per week by the end of the quarter. All parts of the Model 3 production system are now above 500 and some are nearly at 700 cars already.

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