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Elon Musk Emails Employees About 'Extensive and Damaging Sabotage' By Employee (cnbc.com) 490

An anonymous reader quotes a report from CNBC: Tesla CEO Elon Musk sent an email to all employees on Monday morning about a factory fire, and seemed to reference possible sabotage. Now, CNBC has learned that Musk also sent an e-mail to all employees at Tesla late on Sunday night alleging that he has discovered a saboteur in the company's ranks. Musk said this person had conducted "quite extensive and damaging sabotage" to the company's operations, including by changing code to an internal product and exporting data to outsiders. In the email, Musk said "the investigation will continue in depth this week" to "figure out if [the saboteur] was acting alone or with others at Tesla and if he was working with any outside organizations [that want Tesla to disappear]." You can read the full email via CNBC's report.
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Elon Musk Emails Employees About 'Extensive and Damaging Sabotage' By Employee

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  • "Not our fault!" There must be some bad news coming out later this week, and he wants to get ahead of it with some sort of excuse to blame...
    • by gweihir ( 88907 )

      Also, if there is any substance to this, the last thing he should do is communicate it in this fashion.

      • by Anonymous Coward on Tuesday June 19, 2018 @02:16AM (#56807662)

        Also, if there is any substance to this, the last thing he should do is communicate it in this fashion.

        If you read the email, he's actually caught the guy and had a confession. Getting this guy, likely with the police arresting him (given the accusation) likely blew the cover of the investigation. There is no benefit from secrecy any more.

        At this point he firstly deters any other conspirators by letting them know he knows. They are less likely to do damage during this crucial time. Secondly he warns other loyal Tesla employees to look out, and that's a real reason to give accurate information so that they are more likely to spot the problem.

        Open communication is probably the right thing at this stage.

        • by ledow ( 319597 ) on Tuesday June 19, 2018 @08:23AM (#56808622) Homepage

          And also opens himself up to libel action, comments on a legal case (if there even is one!) outside the scope of his legal department, insinuates that his competitors have access to his supposedly secure network (trade secrets, et al presumably).

          Honestly, there's a reason that people shut their mouths in certain situations and let the lawyers / HR people talk rather than themselves. Every employee who works near this guy will know who he is. Certainly if anything in this email is factually wrong, he would have basis to sue. Hell, if there's anything in this email that CAN'T BE PROVEN, he would have basis to sue (i.e. the supposed "confession").

          This could prejudice a trial too... now a judge might need to find a jury who hasn't heard of Elon Musk and hasn't heard such a statement.

          There's also - and this is critical - no need for it. You can send out a message about finding a potential saboteur, stating your suspicions that they aren't alone, reminding people of the need for security and confidentiality, and providing the line to allow whistleblowing, without mentioning half the details Musk has.

          Like Trump, Musk "reacts" rather than acts. He just codifies his internal emotion towards something and sends that out to the world as a quotable company statement, rather than thinks or checks or moderates.

          Anyone with a brain is just thinking "Well, you must have really poor source control, then".

    • by pots ( 5047349 ) on Tuesday June 19, 2018 @04:14AM (#56807956)
      Arson? Arson is a common refrain from Musk? The company has had some problems, to be sure, but this is not a standard excuse.
    • OR... The statement they have a confession is true, and they're not simply assuming there were no others involved. There are a lot of short sellers looking to see Tesla take a hit, so there is a potential profit motive. And while it may seem unlikely, were I Musk and I suspected someone looking to cause damage, I wouldn't be looking at the auto companies in the US. Honestly, I'd be looking at brokerage firms.
  • Not unlikely. (Score:5, Interesting)

    by Qbertino ( 265505 ) <moiraNO@SPAMmodparlor.com> on Monday June 18, 2018 @11:45PM (#56807186)

    I remember the flat-out lies newspaper testreports told about the range of Tesla cars and that were uncovered by the logs the car had recorded about how it actually had been driven. To me there is no doubt that behind the scenes specialised agencies and perhaps even darker machinations are at work to throw monkey wrenches into Teslas attempt to build an market feasilbe electric car.

    Systematic sabotage at Tesla? Really way more likely than most people would think, IMHO.

    • Not unlikely;Tucker (Score:2, Interesting)

      by Anonymous Coward

      Tucker 48

      https://en.wikipedia.org/wiki/Tucker_48

    • Re:Not unlikely. (Score:4, Insightful)

      by Tuidjy ( 321055 ) on Tuesday June 19, 2018 @12:35AM (#56807402)

      Sabotage at Tesla? Given that Elon Musk is mentioning a confession, I buy it completely.

      Sabotage coordinated by a competitor or a company that feels threatened? Possible, but very hard to prove if engineered by a half-competent person.

      Publicly announcing it without hard proof? Probably counter-productive.

      Sending an e-mail to the employees before the internal investigation is completed, and the stock holder notified? Puzzling to say the least.

      • It's not that puzzling. He has a confession, possibility of an organized group, doesn't have time to roll em up with honeypots and whatnot. The best move is to tell all employees to keep eyes open, and let would be actors know all eyes are on them. It's right to alert the public too, the difference between dismissing sh*t talking about burning Teslas and noting it is knowing that someone is actually burning Teslas.

  • Betting opportunity (Score:5, Interesting)

    by Okian Warrior ( 537106 ) on Monday June 18, 2018 @11:47PM (#56807194) Homepage Journal

    About 25% of the stock is shorted (varies day-to-day, but it's a single-digit fraction of the total).

    When you short a stock on margin and the price goes up, you have to add money to your margin account to cover the potential loss.

    Tesla stock is up almost 100 points over the last month, roughly 35% ($370 up from $275).

    Tesla short sellers are taking a bath [reuters.com] right now, to the tune of $2 billion in the last month.

    A fair number of those short sellers would be interested in throwing a pile of cash (say $100,000) at a disgruntled employee to damage the production line.

    Anyone care to bet against that prediction?

    (The next step will probably be to get the FBI involved.)

    • by gl4ss ( 559668 ) on Tuesday June 19, 2018 @12:14AM (#56807316) Homepage Journal

      the shorters made the mistake of assuming that stock price would be tied to real world performance the company the stock is for.

      I don't think they would be in position to do that, if they wanted they could pick any other company as well.

      I have to wonder though, on what basis are people buying Tesla stock right now? it's highly valued for what it represents already and the company is likely to need more cash infusion to survive. I am aware of however that the stock can go up even in such a case, because people "like" it or like the guy running the company.

      like, look as this news _should_ run the stock down and what is actually going to happen is that it's going to go up, because bizarro(and the people buying it are just buying it as if it were making apple like profits any day now).

      • it's highly valued for what it represents already and the company is likely to need more cash infusion to survive.

        Folks such as the GP like to quote that “25% are short sellers” in a vacuum - as if that, in itself, is evidence of nefarious activity. But the thing is... Tesla’s financial position puts it *exactly* in the category of stocks where the gamble known as short selling makes sense (if it ever does).

        If Elon fanboys want to convince the rest of us that hanky panky is going on, they need to point out several other companies in similar financial straits where there *isn’t* a high degree of

      • I have to wonder though, on what basis are people buying Tesla stock right now?

        Insanity? Being dedicated Faithful of the Cult of Elon? There's certainly no rational reason, and even the more usual forms of irrationality in the market don't explain it. Tesla stock is vastly overpriced, with no clear path to profitability on the levels that would justify the price (which would be profits in the tens of billions of dollars range). And that's setting aside the massive amounts of debt they're loaded with.

      • by BadDreamer ( 196188 ) on Tuesday June 19, 2018 @04:24AM (#56807988) Homepage

        People who buy Tesla stock now buy it on the expectation that others will continue to find it valuable.

        All this nonsense about "highly valued" and "represents" are red herrings. Stock value is not in any way dependent on the state of the company they are labeled with (with the exception of if it goes out of business). All they are dependent on his what people will pay for them.

        All this armchair analysis about how the company is doing, and market cap, and profits, and other such nonsense is entirely irrelevant. All that matters is what people are prepared to pay.

        Nothing else. Literally nothing else, what so ever.

        So no, the stock will not go down. People love the idea of the underdog too much.

        • by Cederic ( 9623 )

          Stocks very closely follow a valuation based on their fundamentals. Those are different across different industries, but the people that really make money on the markets track the fundamentals.

          Warren Buffett is rich because he invests prudently based on fundamentals, not emotionally based on 'Tesla are so cool'.

          Right now Tesla are viciously overvalued. They've managed to avoid a market correction and may continue to be an outlier. But they are an outlier, and you'd be a fucking idiot to pretend otherwise.

  • Saboteur was shorting TSLA, now shorting a Supercharger.
    Saboteur at fault for fire, now on fire due to electrical fault.
    Saboteur meant to retire to Sun City, went way of SolarCity.
    Saboteur trying to halt Model 3 production gets overrun by Model 3.

    Just sayin', lots of people hate him about now.

  • by hsthompson69 ( 1674722 ) on Tuesday June 19, 2018 @03:31AM (#56807836)

    Sounds like a crime was committed.

    Sounds like maybe someone should be prosecuted.

    Was a police report filed? Has someone been jailed?

    I'm calling shenanigans until we git a pic of someone in cuffs.

    • by Anonymous Coward

      You do realize where we are in the timeline for this event....
      I expect your curiosity will be satisfied soon... or maybe you'll be moving the goalposts before then?

    • by Solandri ( 704621 ) on Tuesday June 19, 2018 @01:01PM (#56810332)
      Any other company, the first thing people would suspect is that it's unsafe working conditions which are causing the unusual number of fires, and the company/management is at fault for not devoting enough funds nor attention to worker safety. But since it's Tesla, it must be arson by a disgruntled employee, or sabotage by a competitor.

      The thing most people don't realize is that Tesla is not the reason the industry is pushing towards electric cars. The California Air Resources Board is. CARB has a zero emissions vehicle mandate [ucsusa.org] - every year a certain percentage of vehicles each manufacturer sells has to be a ZEV. The formula is a bit complicated, but for 2018 it's a little over 2%. For 2025 it's supposed to be 8%. If an automaker fails to hit the target percentage, they have to buy ZEV credits from someone who surpassed the target (e.g. Tesla). If they fail to do that, they are banned from selling cars in California and about a dozen other states which automatically adopt CARB's guidelines [wikipedia.org] . These states comprise about a third of the U.S. by population, and no auto manufacturer wants to be cut off from a third of the U.S. market. So they are all rolling out EVs to comply with the ZEV mandate.

      Tesla has nothing to do with it. Because of the ZEV mandate, all the other automakers would be working hard to make EVs even if Tesla didn't exist. If anything, Tesla allows manufacturers to delay rolling out their own EV, since they can just buy ZEV credits from Tesla instead (many low-volume high-end exotic car makers are choosing to do this). So it would actually be against the other automakers' self interest to sabotage Tesla since that would raise the market price of ZEV credits, and they'd have to pay more (mostly to Tesla) if they should fail to hit their CARB-mandated ZEV percentage. The only time sabotage would make sense is if they're selling enough of their own EVs that they don't need to buy Tesla ZEV credits (and feel they won't need to in the future), in which case there's no need to sabotage Tesla since they'd already be beating Tesla in the market. Musk didn't start Tesla because he thought EVs were the future and wanted to get in on it early (he may believe that, but that's not the reason he started Tesla). He started it because he realized that CARB's ZEV mandate would give an automaker who made only EVs an economic advantage in the market (other automakers would have to pay him for every EV he sold).

      So there's no incentive for the rest of the auto industry to sabotage Tesla, or EVs in general. That's a self-victimization delusion created by EV advocates who can't comprehend why regular people don't want to buy EVs. Because they can't understand the motivations of regular people, they come up with a conspiracy theory about how the industry is responsible for holding EVs back. Believe me, the industry wants to sell EVs so they can comply with CARB's ZEV mandate, since California is in absolutely no danger of switching from a blue state to a red state. This is also the reason I'm not shorting Tesla stock. 8% ZEVs by 2025 is an extremely aggressive target. I'm not sure the other automakers can hit it. If they can't, and Tesla can survive that long, its current stock valuation may in fact be justified.
  • Oh no, I can see it now. The falcon heavy about to launch. 007 is looking for a way out without getting too singed.

  • Whom he claims shot his rocket to make it explode. /s

  • - Do not use inside Tesla factories.

  • changing code to an internal product

    This makes me wonder about their change control procedures. How was somebody able to push bogus code to production for as long as they did without getting caught? He was either very sneaky or they have lax controls.

  • by Chrisq ( 894406 ) on Tuesday June 19, 2018 @08:45AM (#56808720)
    Well, as the saying goes if you pay peanuts you will get monkeys..

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