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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

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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

Elon Musk Wins in Defamation Trial Over his ‘Pedo Guy’ Tweet

"Anybody that knows this man knows beyond a shadow of a doubt that Elon's accusations were false," Wood said outside court. "This was not the justice that he deserved under the evidence

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

Multi-billionaire tech mogul Elon Musk has emerged triumphant from a defamation trial as the federal court jury swiftly rejected the $190 million claim brought against him by a British man over “pedo guy” tweet, who helped with the rescue of 12 boys and their soccer coach from a flooding Thai cave.

Both Musk and Vernon Unsworth were present for the closing remarks.

Musk appeared unhappy during the closing remarks, while Unsworth, whose back was to the jury, at times looked to be wiping tears from his eyes as Spiro spoke, The Verge reported on Friday.

During the last hearing, Musk’s lawyer told the jury the tweet did not rise to the level of defamation and cases over insults didn’t belong in federal courtrooms.

While, leaving the courtroom, Musk told reporters: “My faith in humanity is restored, the jury did the right thing.”

Elon Musk, CEO of SpaceX and Tesla. Wikimedia Commons

“I accept the jury verdict, take it on the chin, and move on,” Unsworth said outside court.

As per report, in closing remarks, Unsworth’s attorney, L. Lin Wood, characterized one of Musk’s tweets as “sue or true”. Wood said he believed Musk got involved in the Thai cave rescue as a publicity stunt.

“I believe Elon Musk saw an opportunity to capitalize on the attention,” Wood said in his closing statement.

Also Read: Adobe Plans to Buy Oculus Medium: Report

Additionally, Wood asked for $5 million in actual damages, $35 million in assumed damages and $150 million in punitive damages.

“Anybody that knows this man knows beyond a shadow of a doubt that Elon’s accusations were false,” Wood said outside court. “This was not the justice that he deserved under the evidence.” (IANS)