Wednesday, June 19, 2019
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Ilon Musk announced new measures to reduce costs at Tesla – otherwise the company will run out of money in 10 months

Tesla will study all expenses: starting with salaries and ending with rental costs and purchase of spare parts.

Tesla employees received a letter in which Ilon Mask announced new measures to reduce costs in the company. About this write Reuters and Electrek.

The letter said that Musk and the new financial director Zach Kirhorn will personally monitor the company's expenses: purchases of spare parts, salary expenses, travel expenses, rent payments and other payments.

“Literally, every payment that has passed through our bank account must be revised,” wrote Musk. According to him, it is important for the company to examine any expenses of Tesla, regardless of their size.

He recalled that in the first quarter of 2019, the company reported a loss of $ 702 million, and at the end of March, the company's reserves were $ 2.2 billion. If Tesla continues to “burn” money at the same pace, they will end in 10 months, said Musk – therefore, in this period, the company must stop causing losses.

Amid Mask's statement, Tesla shares fell to a two-year low, to $ 215.5 per share. The company's capitalization was $ 38.06 billion. Since the beginning of 2019, the company's shares have fallen by 34%, Bloomberg noted.

In January 2019, Tesla told about plans to reduce 7% of permanent employees – this became part of a cost-cutting strategy with the closure of the referral program. In March, the company promised to close most of its retail stores, but then abandoned the idea.

# news #tesla


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