Tesla suffers from sabotage, but investors needn’t worry
Tesla, the luxury tech company at the forefront of automotive trends like electrification and automation, has been sabotaged by an employee who was passed over for promotion. In an email to staff, founder, CEO, and president, Elon Musk, claimed that the worker did “quite extensive and damaging sabotage,” to the company’s operations.
Musk wrote: “there may be considerably more to this situation than meets the eye,” and claimed that an in-depth investigation was ongoing. The nature of the sabotage was data based, and “included making direct code changes to the Tesla Manufacturing Operating System under false usernames and exporting large amounts of highly sensitive Tesla data to unknown third parties.”
Tesla’s share price has appreciated by 27% in 30 days
SOURCE: Yahoo Finance
Speculating over whom the “unknown third parties” were, Musk said: “As you know, there are a long list of organizations that want Tesla to die. These include Wall Street short-sellers, who have already lost billions of dollars and stand to lose a lot more. Then there are the oil & gas companies, the wealthiest industry in the world — they don't love the idea of Tesla advancing the progress of solar power & electric cars. Don't want to blow your mind, but rumor has it that those companies are sometimes not super nice. Then there are the multitude of big gas/diesel car company competitors. If they're willing to cheat so much about emissions, maybe they're willing to cheat in other ways?”
Sabotage is an obviously dangerous thing – but investors shouldn’t be overly concerned until they learn more. Tesla has dealt with data leaks and sabotage before, and is currently riding a winning streak due to Musk’s direct involvement with the delayed Model 3 production and the jettisoning of extraneous staff members. If it can hit targets in the next few weeks, that is far more likely to determine the company’s success than any other considerations – including data breaches.
Dominion holds Tesla in its Global Trends Luxury Fund.
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