Elon Musk has reportedly told Tesla's employees that the company will run out of money for 10 months if no changes are made to a public mail – which was obtained and reviewed by Reuters – on Thursday. The CEO's announcement comes after the electric car manufacturer ended the first quarter of 2019 with $ 2.2 billion in cash, raising a further $ 2.7 billion to keep the company floating against a $ 702 million loss that quarter.
"This is a lot of money, but really only gives us about 10 months on the Q1 fuel to achieve breakeven!" Writes Musk. "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."
The "hardcore" cost savings will be determined by Musk and the newly appointed Chief Financial Officer Zach Kirkhorn, who together will review "all expenses of any kind anywhere in [world] including parts, wages, travel expenses, rent, literally every payment that leaves our bank account. " This news adds to what has already been a turbulent year for Tesla, which led to a fall in stock prices over the past six months.