Brakes on spending: Musk tells staff to start penny-pinching following Q1 loss
Tesla sank to a two-year low after CEO Elon Musk told employees that effective immediately he and the electric car-maker's new CFO will be scrutinising every cent the firm spends in a "hardcore" focus on costs.
In his email, Mr Musk said it was extremely important to examine "every expenditure at Tesla, no matter how small, and be sure that it is critical". He underscored the firm's roughly $700m (€626m) first-quarter loss and said that even with more than $2bn of cash on its books, it "only gives us approximately 10 months at the Q1 burn rate to achieve break-even!"
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Tesla, which earlier this month raised $2.35bn through debt and stock offerings, has been slated by investors and analysts for the Q1 loss. The slump yesterday of as much as 4.9pc pushed this month's decline to 14pc.