Elon Musk says Tesla is a victim of "extensive" sabotage

Elon Musk Reckons A Saboteur Has Been Dicking Around With Tesla Production

Tesla will be investigating the matter and has yet to determine whether the person was acting alone or with outside help.

The culprit, whose identity remains unknown, allegedly admitted to making "direct code changes to the Tesla Manufacturing Operating System under false usernames", Musk, the company founder, wrote in the email, titled "Some concerning news", which was obtained by CNBC.

Tesla has been going through a hard time lately, facing safety questions over its Autopilot system, layoffs, and production issues with its Model 3.

Elon Musk has urged paranoia among his staff after Tesla suffered "extensive and damaging sabotage" by an employee and a fire that paused production of his Model 3 cars.

CNBC confirms that many employees from different divisions of Tesla have confirmed receiving such an email from the CEO. The findings are mixed about whether that leaves the company enough margin to sell the cars at $35,000 and still cover investments in future product, expand its Supercharger network, and accommodate increased production costs from the assembly line that now takes more manual labor than Musk originally planned.

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Tesla (TSLA) stock fell Tuesday, halting a seven-day run, after Chief Executive Elon Musk disclosed an alleged saboteur in the company's ranks and warned short-sellers that their position was going to "explode". "In light of these actions, not promoting him was definitely the right move". Musk said the fire could just be a "random event", but quoted businessman and engineer Andrew Grove's famous line that "only the paranoid survive".

"As you know there are a long list of organisations that want Tesla to die", he added, citing Wall Street short-sellers, oil and gas companies and rival auto makers as being among them. "If they're willing to cheat so much about emissions, maybe they're willing to cheat in other ways?" he wrote.

Tesla is dismissing more than 3,000 workers from its California headquarters and beyond, according to a report from Bloomberg.

Tesla has made around 30,000 Model 3 vehicles in 2018, according to internal documents viewed by Business Insider and confirmed by two Tesla employees. "Please be on the alert for anything that's not in the best interests of our company".

Tesla is no stranger to concerns of sabotage. At the company's annual meeting earlier this month, Musk said he expected to reach that target by the end of June.

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