CEO Elon Musk told employees in an email Thursday that he will review the company’s costs going forward in an attempt to lower expenses, recent news says. After burning cash at a frightening pace and trying hard to return to a profitable path, electric carmaker Tesla recently chose to take on $2 billion in debt to fill out its threatening-low cash reserves. Unfortunately, that cash injection is far from a strong cure. At best, it could buy the company some time to increase revenue or at least reduce the speed at which it drops money.
Tesla completed the Q1 of 2019 with $2.2 billion in cash. However, the company lost $702 million, and so Musk said in April that Tesla would need to be on a “spartan diet.” Tesla then went out and increased that $2.7 billion to help the company stay sailing.
Musk wrote Thursday: “This is hardcore, but it is the only way for Tesla to become financially sustainable and succeed in our goal of helping to make the world environmentally sustainable.”
Before this month, Musk affirmed he works”between 80 and 90 hours a week” to keep his businesses afloat.
You’re able to take a peek at his tweet too:
2018 might have been a pivotal year for the company’s manufacturing efforts. However, Tesla still faces an existential crisis in regards to cash, and Musk’s solution seems to be the same micromanaging that he is known for.
“If you are fighting a battle, it’s way better if you are at the front lines. A general behind the lines is going to lose,” he told to The Wall Street Journal at 2015.