Tags: tesla | elon musk | stock | price | cost

Tesla Touches 2-Year Low as Musk Puts a 'Hardcore' Cost Focus

Tesla Touches 2-Year Low as Musk Puts a 'Hardcore' Cost Focus
(Winnietam/Dreamstime)

Friday, 17 May 2019 02:55 PM

Tesla Inc. sank to a two-year low after Chief Executive Officer Elon Musk told employees that effective immediately he and the electric carmaker’s new chief financial officer will be scrutinizing every dollar the company spends in a “hardcore” focus on costs.

In an email to staff, Musk said it was extremely important to examine “every expenditure at Tesla, no matter how small, and be sure that it is critical.”

He underscored the company’s $700 million first-quarter loss and said that even with more than $2 billion of cash on its books, it “actually only gives us approximately 10 months at the Q1 burn rate to achieve breakeven!”

Tesla, which earlier this month raised $2.35 billion through debt and stock offerings, has received some intense criticism from investors and analysts alike for the first-quarter loss.

Friday’s 4.9% slump in the shares (TSLA) pushed the decline this month to 14%. The stock has been among the hardest hit amid an escalation in the U.S.-China trade war.

China, which is one of the biggest auto markets in the world and has strong demand for electric vehicles, is a key area of focus for Tesla. Earlier this year, the company broke ground on a battery and vehicle factory on the outskirts of Shanghai and according to Musk, could be making as many as 2,000 cars a week by the end of 2019.

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Tesla Inc. sank to a two-year low after Chief Executive Officer Elon Musk told employees that effective immediately he and the electric carmaker's new chief financial officer will be scrutinizing every dollar the company spends in a "hardcore" focus on costs.
tesla, elon musk, stock, price, cost
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2019-55-17
Friday, 17 May 2019 02:55 PM
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