CEO Musk to evaluate all of Tesla’s expenses in new cost cutting plan

by SpeedLux
Tesla Inc logo

Tesla Inc Chief Executive Officer Elon Musk informed workers on Thursday that he will boost scrutiny of the company’s expenses in his recent initiative to slash costs at the electric automaker.

Tesla earlier this month shut down at a $2.7 billion offering of stock and convertible notes, providing it much needed cash as it increases up production.

Musk in an email to employees, observed by Reuters, stated its net proceeds from the offering gave Tesla only 10 months to get break even at the rate it was burning capital in the first quarter.

“That is why, going forward, all expenses of any kind anywhere in the word, including parts, salary, travel expenses, rent, literally every payment that leaves our bank account must (be) reviewed,” Musk stated.

Tesla’s attempts to slash costs are not recent. In April 2018, in an email sent to workers, Musk stated he had instructed his finance collaborate to “comb through every expense worldwide” to discover possible cuts.

More recently, Tesla laid off 9 percent, and 7 percent of its employees in June 2018, and January, respectively.

The new initiative comes following a tumultuous year for Tesla that has observed experts and investors cast doubt on its ability to produce, sell and offer enough cars to make a sustainable profit.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.


SpeedLux is a high-authority automotive blog providing the latest automotive news and reviews. SpeedLux covers everything related to cars, bikes, and motorcycles, from news and reviews, to troubleshooting guides, tips and tricks, and more. SpeedLux was born in 2009 and we have over 20,000 articles published on our blog. We thank all our readers, as well as our partners, without whom we could not have reached this level.


©2009 – 2024 SpeedLux – Daily Automotive News and Reviews. All Right Reserved.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More