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.
