On May 13, at Tesla Can not Spare the Dime, the Wall Street Journal commented that "the pioneer of Elon Musk's electric cars is running out of money and time, even after a recent capital increase."
The full extent of this article became apparent on Friday in an email that Elon Musk sent to all employees. MSN has posted the full email to employees.
- It is important to keep in mind that we lost $ 700 million in the first quarter of this year, which is more than $ 200 million per month.
- Investors, however, supported our efforts and agreed to donate us $ 2.4 billion (our net revenues) to show that we can be financially sustainable. That's a lot of money, but in fact it only gives us about ten months in the firing rate of the first quarter to reach break even.
- In the future, all expenses of any kind in any part of the world, including parts, salary, travel expenses, rent, literally, all payments that come out of our bank account should be reviewed, confirmed as critical and top of all pages of exit payments signed by our FINANCIAL DIRECTOR.
- I will personally review and sign every 10th page.
The time of musk
Tesla is so desperate for money that every part, salary, travel expenses, "literally all pay", no matter how trivial, needs to be signed by the CFO, with Musk reviewing every tenth item.
How long will the CFO and Musk pass by approving parts, wages, pencils and even toilet paper? Wages should not be defined?
Taken literally, but that was Musk's word, no toilet paper will be ok unless it's critical. Presumably, Musk will sign on every tenth roll.
Writing the memo the way he did, Musk shows how much Tesla is desperate for money, despite a $ 2.4 billion cash injection.
And the previous lies? Did not Musk commit to making money every quarter from now on?
Instead of profit, Musk is reviewing and approving office supplies, including pencils, pens and toilet paper, literally.
Unless your "critical" stamp there will be none. This is how the memo actually reads.
Mike "Mish" Shedlock