Tesla Set to Implement “Hardcore” Cost-Cutting Measures
Mike Sanders / 4 years ago
Tesla to Tighten the Belt
Without a doubt, one of the most desired and fashionable car brands out there at the moment is Tesla. With its highly innovative designs and fully-electric ethos, consumer demand for their cars has been very high for the last few years.
Tesla does, however, have two pretty substantial problems. Firstly, that it’s struggling to actually get cars off the manufacturing line, and secondly, that they’re bleeding money!
In a report via CNET, however, a new initiative by the company will see a “hardcore” level of cost-cutting introduced to try and help balance the books.
With a recent $2.7bn in funding raised for the company, the newly appointed CFO Zach Kirkhorn will reportedly be overseeing every single outgoing payment. In addition, Elon Musk will also reportedly be taking a more active role in ensuring costs are kept to a minimum.
The cost-cutting measures are reportedly going to take a long hard look at many areas of the business. This includes part-costs, rentals (presumably for plants and showrooms) and, of course, salaries.
What Do We Think?
Since it’s foundation, Tesla has only ever actually reported a profit for around 2-3 quarters. With them reporting huge losses in the most recent (around $750,000,000) clearly things need to improve.
Hopefully, neither jobs nor quality will be compromised in these cuts. It is, however, entirely logical to see them making this decision.
What do you think? – Let us know in the comments!