I love how straight and to the point Reuters reporting is.
Musk to review all of Tesla's expenses in new cost cutting plan
11–20 of 248 posts
Re: Musk to review all of Tesla's expenses in new cost cutting plan
#12Re: Musk to review all of Tesla's expenses in new cost cutting plan
#13[flagged]
Re: Musk to review all of Tesla's expenses in new cost cutting plan
#14https://www.reddit.com/r/teslamotors/comments/bq50s8/elons_a...
Yikes. It’s bizarre that they just now realize this and implement it. Reminds me of something a teenager would do at the last possible minute before something bad happens.
Re: Musk to review all of Tesla's expenses in new cost cutting plan
#15In the letter, Elon stated they have burned through over $200m/month this year after the cost reductions from last year and January and again in March. (That's net $200m lost each month, not $200m spent each month.)
They raised $2.4 billion a few weeks ago, about half of which must go toward servicing existing debt, and had about $900m in the bank before the offering, leaving them about $2.1billion in cash.
Or in other words, 10 months of cash based on the trend established by the first 3 months of the year if they do not either cut losses, dramatically increase sales, or both.
Re: Musk to review all of Tesla's expenses in new cost cutting plan
#16https://www.reddit.com/r/teslamotors/comments/bq50s8/elons_a...
Yikes. It’s bizarre that they just now realize this and implement it. Reminds me of something a teenager would do at the last possible minute before something bad happens.
look up elons promises of battery swaps, 35k m3, 2020 roadster, "full self driving", and the closing of stores but then cancelling that and teslas solarcity/solar shingles shitshow
i want to remind everyone.. any mention of "self driving" is a scam, fraud. on a site like hackernews im still surprised the teslemmings are still regurgitating this idea
Re: Musk to review all of Tesla's expenses in new cost cutting plan
#17Definitely less than 10 months.
Demand is dropping off as (a) serious competitors come onto the market e.g. Mercedes EQC, (b) the time between a model refresh increases e.g. S and X models and (c) the concerns over customer service increase.
And I still believe that the Model 3 was a mistake to release at this time. It is cannibalising their higher priced models and squeezing the company's overall gross margins at at time when they need money.
Re: Musk to review all of Tesla's expenses in new cost cutting plan
#18https://www.reddit.com/r/teslamotors/comments/bq50s8/elons_a...
Your link is to what is represented as the authentic text of the memo. If genuine, to me, this seem like the most important bit:
"It is important to bear in mind that we lost $700 million in the first quarter this year, which is over $200 million per month. Investors nonetheless were supportive of our efforts and agreed to give us $2.4 billion (our net proceeds) to show that we can be financially sustainable.
That is a lot of money, but actually only gives us approximately ten months at the first-quarter burn rate to achieve breakeven. It’s vital that we respect the faith investors have shown in Tesla, but it will require great effort to do so."
With relatively low gas prices at the moment, decreasing federal subsidies for electric cars, and more players entering the market, it seems like Tesla is in a pretty tough spot.
Re: Musk to review all of Tesla's expenses in new cost cutting plan
#19sounds like a misleading headline
The original letter says the 2.4 billion raised a few weeks ago, would be used up in 10 months at current burn rate.
It's for the money recently raised, not the entire company's bank account. Headline is misleading
Re: Musk to review all of Tesla's expenses in new cost cutting plan
#20Few thoughts
1. Is anyone still buying car? May be it's a huge necessessity in US but most of the cities are fairly packed and have good public transport and improving
2. Idea of self driving car will indeed be a big selling point. Still people will pool those and cost of transport in general will come down because of Uber's fleet. Self ownership will still not go up significantly unless idea is to buy for long distance travel (not city travel)
3. The rumors this could be beginning of Tesla being taken private by EM has merits, considering his recent spat with SEC