Tesla CEO Elon Musk has emailed staff to inform them of his plans to implement cost-cutting measures within the company to help curtail its losses.
Said email has been obtained by Electrek. And, in it, Musk has explained that Tesla will be putting every payment made under the microscope in a bid to save cash. These payments include costs linked to "parts, salary, travel expenses, and rent".
Tesla reported having $2.2 billion on hand at the end of the first quarter but Musk claims that it won't last long, given the rate at which it is being spent.
“This is a lot of money, but actually only gives us about 10 months at the Q1 burn rate to achieve breakeven!” he wrote 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 has also stated that he will review and sign off on every 10th page of outgoing payments made by Tesla but new chief financial officer Zack Kirkhorn will be reviewing and signing off on every single page of same.
Tesla has been keen on cutting costs for the last several months and has already laid off multiple employees, including around half of its global recruiting team.
The company announced a new $2.7 billion capital raise in order to assist with its financial position back in April. The raise made it so that $860 million worth of shares got sold while $1.84 billion was raised in convertible notes.
Musk has charged employees with taking ownership of expenses and has given them a few weeks to come up with ways of making improvements company-wide and helping Tesla save more money.