San Francisco: 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, Electric 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 Elon 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 Elon Musk as saying in the email. (IANS)
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