If you look at the news coming out of Tesla over the last year or so, it’s obvious that the company is desperately trying to find ways to decrease operating costs. Whether it’s by closing down dealerships, publicly dismissing LIDAR because it’s too expensive, allegedly attempting to block worker’s comp cases, or laying off 9% of its workforce last June and a further 7% this January.
On Thursday Tesla CEO Elon Musk stepped up to a new level of money crunch when, according to Reuters, he told employees that every single page of any request for money needs to be signed off by either himself or company chief financial officer, Zack Kirkhorn, no matter how small. Musk confirmed this by confirming this crunch includes parts, salary, travel expenses, rent, and “literally every payment that leaves our bank account must be reviewed.”
Tesla Posts $700 Million First-Quarter Loss as CEO Elon Musk Says It Will Offer InsuranceAnalysts expected that Tesla would lose in the neighborhood of 69 cents per share in the first…
Read more ReadIn that same statement to employees, Musk stated that if the company’s Q1 losses of $700 million were to extend through the year, the company would be out of money within 10 months. Despite recently closing a $2.7 billion offering of stock and convertible notes, the company currently only has reserves of $2.2 billion. [Read More]
Published @ May 18, 2019
Micromanagement is not the answer
They call me Ben Stein. Elon Musk says Tesla needs financial micromanagement or it will go broke: ...