Elon Musk has reportedly told Tesla employees that the company will run out of cash in 10 months if no changes are made in the e-mails of all staff – obtained and reviewed by Reuters – on Thursday. The CEO's message came after the electric vehicle manufacturer ended Q1 2019 with $ 2.2 billion in cash, and raised $ 2.7 billion further to keep the company floating in a loss of $ 702 million in the quarter.
"This is a lot of money, but actually only gives us about 10 months at the rate of burning Q1 to break even!" Wrote Musk. "This is difficult, but this is the only way for Tesla to become financially sustainable and succeed in our goals to help make the world environmentally friendly."
The "hardcore" cost cut will be decided by Musk and the newly appointed Chief Financial Officer Zach Kirkhorn, who will jointly review "all costs in any form anywhere in [world], including parts, salaries, travel expenses, rent, literally every payment that leaves our bank account. "This news adds to what has been a tumultuous year for Tesla, causing its share price to drop over the past six months.