Tesla CEO Elon Musk has told employees that unless significant cost-cutting measures take place, Tesla will run out of cash in about 10 months.
This prediction takes into account the $2.7 billion raised by the company through a recent stock offering, reports Reuters.
“That is why, going forward, all expenses of any kind anywhere in the word, including parts, salary, travel expenses, rent, literally every payment that leaves our bank account must (be) reviewed,” said Musk in an email to employees.
This isn’t the first time Tesla has taken aggressive measures to lower its expenses. In June 2018, 9% of the Tesla workforce was cut, while in January 2019, a further 7% lost their jobs.
Tesla recently reported a quarterly loss of $702 million for the first quarter of 2019, citing unforeseen issues with Model 3 deliveries as one of the key reasons for this.