Elon Musk tells Tesla employees he'll review all of company’s expenses in new cost-cutting plan: report
Tesla CEO Elon Musk told employees in an email Thursday that he will personally review the company’s expenses going forward in an attempt to cut costs, according to a new report.
Musk wrote that it was “extremely important” for the company to “examine every expenditure at Tesla, no matter how small,” according to Electrek, which received a copy of the email.
Earlier this month, Tesla closed a $2.7 billion offering needed for the company to go forward with production.
“This is a lot of money, but actually only gives us about 10 months at the Q1 burn rate to achieve breakeven!” Musk explained.
The CEO wrote that “every payment that leaves our bank account” including travel expenses, salary and rent will be reviewed. He acknowledged the tactic was “hardcore” but explained that it was the solution to keep Tesla “financially sustainable.”
This is not the first time Tesla announced plans to trim costs. Last month, Tesla laid off dozens of in-stores sales employees and said it would focus on shifting operations to online. In June 2018, Tesla laid off 9 percent of its workforce.
CLICK HERE TO GET THE FOX BUSINESS APP
Tesla posted a loss of $702 million in the first quarter.
"We expect to return to profitability in Q3 and significantly reduce our loss in Q2,” Musk said in a quarterly update.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 357.09 | +11.93 | +3.46% |
Earlier this month, Musk confirmed he works "between 80 and 90 hours a week" to keep his companies afloat.
"In recent years, hours were much higher. Don’t recommend though — bad for health & happiness. But no choice or Tesla would die. Hope to reduce to 80 hours next year," the 47-year-old revealed in a tweet.
Years prior, Musk claimed he worked seven days a week, averaging more than 100 hours.
"It is incredibly difficult to survive as a car company. Incredibly difficult," he previously told the podcast Recode Decode with Kara Swisher, per Vox.
Fox Business’ Joe Williams contributed to this report.