Tesla CEO Elon Musk on Thursday said that, effective immediately, he and the company's new chief financial officer personally will review all expenses going forward in a "hardcore" attempt to cut costs following massive losses during the last quarter.
In an email sent to all Tesla employees and obtained by all-things-Tesla and EV news website Electrek, Musk noted that it was "extremely important" to "examine every expenditure at Tesla, no matter how small."
Even with $2.2 billion in cash on its books at the end of last quarter, Musk said that wouldn't last that long with the company's burn rate: "This is a lot of money, but actually only gives us about 10 months at the Q1 burn rate to achieve breakeven!"
To staunch the bleeding, Musk said in the email that he is implementing a new cost-cutting initiative that will see all teams examine every payment, including "parts, salary, travel expenses, and rent."
Zach Kirkhorn, Tesla's new finance chief, will review and sign every page of outgoing payment, while Musk himself will review and sign every 10th page, Musk said.
"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," he said.
Tesla earlier this month revealed that it was raising some $2.7 billion in additional capital to support its ongoing operations and expansion plans.
Shares of Tesla were down nearly 5% at $217.39 in early afternoon trading on Friday.