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Amongst new innovations, Elon Musk and his celebrated automotive company Tesla have long been the subject of wide criticism. Whether it’s backlash from his Twitter account or fraud, the past financial year has not been smooth sailing for the entrepreneur. According to a leaked email to his employees, Tesla has 10 months left of funds before it supposedly goes under.
“This is a lot of money, but actually only gives us about 10 months at the Q1 burn rate to achieve breakeven!” writes Musk. “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.”
While it is no secret that Tesla has worked at a steep loss in the past, the leaked email did cause concern. According to an earnings report at the end of the Q1, the company had lost $496 million USD. While Tesla has ended with $2.2 billion USD and raised another $2.7 billion to its name, the question isn’t if its making enough, but rather is it worth continuing without turning a profit.
Tesla has always been a leader in electric cars however as traditional and luxury companies such as Mercedes Benz and Audi come to fruition with eco technology, it’s proven to hurt the Californian-based enterprise. We can’t really expect the multi-billion dollar powerhouse to close just yet – considering other Elon Musk-owned projects, Space X and The Boring Company – are sky-rocketing (pun intended).
Thus far, the biggest and easiest remedy to Musk’s financial issues will be close inspection of all ingoing and outgoing funds as his email suggests.
“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,” Musk said.
Stay tuned.
