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.
“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.