Tesla CEO Elon Musk is reportedly implementing new “hardcore” cost-cutting efforts at Tesla. The Company’s new CFO will review every outgoing payment, and Musk himself will review every tenth payment. Musk reportedly told employees that the company’s recent cash raise only gives it enough money to last ten months.
Electrek reports that following massive losses for Tesla during the last quarter, CEO Elon Musk is implementing new “hardcore” cost-cutting measures and reviewing all of the company’s outgoing expenses. Musk made this announcement via an email to employees in which he argued that it is “extremely important” to “examine every expenditure at Tesla, no matter how small.”
Musk reportedly referenced Tesla’s last quarter in which the automaker saw a loss of $700 million. Although the company held a $2.2 billion cash position following the losses, Musk stated that money wouldn’t last long given the firms burn rate. Musk stated: “This is a lot of money, but actually only gives us about 10 months at the Q1 burn rate to achieve breakeven!”
So Musk is now introducing harsh cost-cutting measures which will examine the expenditures of all Tesla teams and outgoing payments including “parts, salary, travel expenses, and rent.” Tesla’s new CFO Zach Kirkhorn will also reportedly be reviewing and signing every page of outgoing payments while Musk will personally review and sign every tenth page. “This is hardcore, but it is the only way for Tesla to become financially sustainable and succeed in our goal of helping make the world environmentally sustainable,” Musk stated.
Musk stated that employees have a few weeks to examine current expenses and find ways to make improvements before reviews begin. This move comes shortly after Tesla closed a number of retail stores worldwide and laid off over 1,000 employees in attempts to reduce company costs. Tesla closed a $2.7 billion capital raise earlier this month support its current operations.