Wednesday January 29, 2020
Home Lead Story Tesla CEO Elo...

Tesla CEO Elon Musk Decides to Personally Examine, Review all Tesla Expenses

Currently Tesla’s market value is $61 billion and Musk has an estimated net worth of $20.1 billion, making him the 80th richest person in the world

0
//
Tesla CEO Elon musk, board
Tesla CEO Elon Musk. (VOA)

To cut losses, Tesla CEO Elon Musk has decided to personally examine and review every expenditure at Tesla, no matter how small, alongside Zach Kirkhorn, the company’s Chief Financial Officer (CFO), the media reported.

Musk informed his Tesla team about the decision over an email that was sent to all employees, Electrek reported on Thursday.

The new cost-cutting initiative involves examining every payment, including “parts, salary, travel expenses, and rent.”

Referencing to the loss of $702 million that the automaker suffered last quarter, Musk said the step is “extremely important”.

Slowing sales were bad news for Tesla because the company always needs cash in order to pay its sizable debts, according to analysts. Tesla had a $2.2 billion cash position at the end of last quarter and Musk said that it would not last that long with their burn rate.

“This is a lot of money, but actually only gives us about 10 months at the Q1 burn rate to achieve breakeven,” the report quoted Musk as saying in the email.

Elon Musk. Wikimedia Commons

The Tesla CEO has granted the employees a few weeks to regularise, own and improve their work-related expenses. “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 added.

The new cost-cutting effort comes after Tesla laid off many employees in another attempt to reduce cost, the report added.

Earlier this month, Tesla also closed a massive $2.7 billion capital raise in order to support its operations.

Also Read- Sony, Microsoft Team up on Cloud-based Gaming Services

Meanwhile, social media was taken by storm when Musk revealed that he himself puts in 90-120 hours of work per week to keep Tesla alive.

Last year, after Tesla first achieved a Model 3 production rate of 1,000 units per day, Musk turned his focus to costs and encouraged everyone to make contributions.

Currently Tesla’s market value is $61 billion and Musk has an estimated net worth of $20.1 billion, making him the 80th richest person in the world. (IANS)

Next Story

Tesla CEO Elon Musk Allays Environmental Fears on Tesla’s Plant in Germany

The Berlin unit will manufacture SUV Model Y, which could go into production by 2021. The unit could initially employ 3,000 people. The headcount could rise to 7,000

1
Tesla logo
A Tesla logo is seen in Los Angeles, California. VOA

Tesla CEO Elon Musk has responded to environmental concerns including excessive water use for building the massive ‘Gigafactory 4’ near Berlin to produce electric cars for the European market, saying that such concerns were baseless.

The leading non-profit organization BUND (Friends of the Earth Germany) met Tesla officials last week to discuss possible environmental pollution from the planned Gigafactory.

“Sounds like we need to clear up a few things! Tesla won’t use this much net water on a daily basis. It’s possibly a rare peak usage case, but not an everyday event,” tweeted Musk.

“Also, this is not a natural forest a” it was planted for use as cardboard & only a small part will be used for GF4,” he added.

Tesla CEO Elon musk, board
Tesla CEO Elon Musk. (VOA)

The site where the Gigafactory will be built has invited protests over concerns that the facility will excessively use water and cause deforestation by destroying 300 hectares of forest.

“Giga Berlin will build sustainable energy vehicles using sustainable energy, so net environmental impact will be extremely positive!” Musk said.

Also Read: OPPO Joins Hands with IIT Hyderabad to Boost AI, 5G Integration

After Shanghai in China, Musk selected Berlin as Tesla’s next gigafactory outside the US where the company is planning to invest 4 billion euros ($4.4 billion) and produce 150,000 cars a year.

The Berlin unit will manufacture SUV Model Y, which could go into production by 2021. The unit could initially employ 3,000 people. The headcount could rise to 7,000. (IANS)