Elon Musk Tells Tesla Employees He Is Embarking On A Cost-Cutting Effort

Tesla chief executive Elon Musk has emailed employees at the electric car manufacturer to say that he is launching a “hardcore” cost-cutting initiative at the company to help quell its huge losses.

In the email, obtained by Electrek, Musk revealed that teams within the company will examine every payment being made in an effort to save money. This will include all costs associated with “parts, salary, travel expenses, and rent.”

Tesla had $2.2 billion of cash on hand at the end of the first quarter but according to Musk, that money won’t last for long. “This is a lot of money, but actually only gives us about 10 months at the Q1 burn rate to achieve breakeven!” he stated in the email.

Also Read: Tesla Looking To Raise $2 Billion Selling Stock And Debt

“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 continued.

The head of Tesla added that he will review and sign every tenth page of outgoing payments made by the company while Tesla’s new chief financial officer Zach Kirkhorn will review and sign every single page of outgoing payments.

Tesla has been eager to cut costs for the last few months and has axed many jobs, including roughly half of its global recruiting team.

Last month, Tesla announced a new $2.7 billion capital raise to help its financial position. This raise saw $860 million worth of shares sold and raised $1.84 billion in convertible notes.

  • charlotteharry57

    Great. So now we can expect a lot more crashes and fires. Because of cheaper parts.

    • Stephen G

      No..I’m sure they won’t do anything drastic like using BMW’s suppliers.

      • Smith

        They are already using inferior suppliers to BMW so how much lower can they go!

  • Mr. EP9

    I know that image was from the 60 minutes interview but I imagine that’s the look Elon’s going to give the employees he’s about to fire.

  • Bash

    Wait, even after the model Y?!

    • Smith

      No business plan and no business model that will ever see Tesla profitable because they are using the wrong technology, the wrong manufacturing process and the wrong materials. And also, battery EVs do not save the world, they are more harmful to the environment than a petrol engine and then there is the aluminium that he uses for the body and chassis on some cars, far greater energy consumption and emissions to make aluminium than steel, to he is doing nothing to save the planet, just making it worse.

      • …and global warming is a Chinese scam, yes we know. There are countless of researches proving all your points wrong.

  • designer_dick

    You know what would cut their costs? If they’d actually designed their cars for manufacture and engineered them properly.

    The on-board electronics, batteries and motors are world class, but, while the Model 3’s body design is considerably simpler than the Model S or Model X, it’s still incredibly complicated, and comprised of many, many more pieces than a comparable mass-produced car from the likes of GM, Ford or even FCA. This needless complication makes the car time-consuming and expensive to build, and probably accounts for the Model 3’s less than stellar build quality.

  • SteersUright

    Let me guess the cost cutting won’t be coming from top executives’ salaries…

  • Thando_Gqabaza

    Tesla will go bankrupt , but lets see what happens

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