Tesla Launches New Round of Cost Cuts

May 17, 2019 at 1:47 AM

Tesla Inc. CEO Elon Musk told employees yesterday that the company will conduct a new review of its expenses in a bid to further cut costs.

His note says the $2.7 billion Tesla raised two weeks ago through a stock and convertible notes offering will give the company 10 months in which to achieve breakeven.

In the meantime, Musk declares, “all expenses of any kind anywhere in the world must be reviewed.” Tesla has struggled to ramp up production of its Model 3 electric sedan (pictured) and establish sales outside the U.S.

Tesla’s ability to achieve high-volume sales of the $39,900 car is considered essential to the company’s viability as a profitable enterprise.