Tesla shares recorded their lowest close in almost 2 1/2 years after Elon Musk called for a «hardcore» review of all the electric-car maker’s expenses and an analyst warned of potentially severe fallout from a fatal crash involving Autopilot.
Musk, Tesla’s chief executive officer, wrote in an email to staff late Thursday that he and new Chief Financial Officer Zachary Kirkhorn will review «literally every payment» that leaves the company’s coffers to confirm that expenditures are critical.
Musk referred to Tesla losing $US700 million ($1.01 billion) in the first quarter, and said that while the company raised about $US2.4 billion in capital recently, it won’t last long at the rate the company was burning through money early this year. The carmaker’s shares closed 7.6 per cent lower at $US211.03, its lowest close since December 2016.
The email is similar to a missive Musk, 47, sent to employees in April 2018, when he announced having asked Tesla’s finance team to «comb through every expense worldwide, no matter how small, and cut everything that doesn’t have a strong value justification.»