Tesla's Stock Offering Bought It Limited Time, Email Shows

teslas stock offering bought it limited time email shows

Ten months. That’s how long Tesla’s CEO claims this month’s offering of $2.7 billion in stock and convertible notes bought the struggling automaker.

Hungry for cash to fuel new model development, a Shanghai Gigafactory, and an assembly line on which to build the upcoming Model Y crossover, Tesla has resorted to endless measures to trim costs, from moving to an online sales model and attempting to cull the bulk of its sales staff, to general staff reductions, to reducing build configurations. Vehicles prices seem to change by the week.

And still it’s not enough. To keep the automaker afloat, Musk told employees, the company will need to count every penny.

Thanks to an email seen by Reuters, we’re now aware of Tesla’s plan.

Claiming that the cash collected through the stock offering gives the company 10 months to reach a break-even point, Musk wrote, “That is why, going forward, all expenses of any kind anywhere in the word, including parts, salary, travel expenses, rent, literally every payment that leaves our bank account must (be) reviewed.”

The plan, Reuters notes, sounds an awful lot like last year’s plan, in which the company pored over its household budget with a fine-toothed comb in a bid to fund the ramp-up of Model 3 assembly, among other expenses. Its workforce contracted by 16 percent between last June and January of this year.

After a poor deliveries report for first-quarter 2019, Tesla followed up the bad news with an earnings report that showed a $702 million loss. That put an end to the company’s two-quarter streak of profitability.

Also this week, Tesla yet again made tweaks to its vehicle pricing. In the latest move, the company increased the price of all Model 3 variants by $400, including the $35,000 Standard Range model that briefly appeared on the company’s ordering site before disappearing into the ether. One must walk into a Tesla store or call in order to buy the base car (which, it should be noted, was hailed as an “everyman’s EV” during the Model 3’s 2016 launch).

You’ll now spend $35,400 on one, assuming the sales rep doesn’t strong arm you into a Standard Range Plus.

[Image: Tesla]

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  • SuperCarEnthusiast SuperCarEnthusiast on May 20, 2019

    The Chinese government is licking it’s chops! The had such a great time with Volvo and think what they could do with Tesla with pretty much unlimited funding to really build up Tesla! LOL!

  • Incautious Incautious on May 20, 2019

    8000 cordless drill batteries auto crash and a dope smoking Druggie CEO. I pass.

  • Kip65688146 "Everyone is worried about the public stations, but why don't we focus on the low hanging fruit: home charging? "BAM!!!!!!!!!!!!!!!!!!.............This guy gets it!I'll add current battery tech means EV's in their current state are not replacements for ICE Cars & trucks but make a good argument as 2rd or 3rd vehicles in mulit-car households which is hardly a niche market.
  • 2ACL Looking forward to the next part. I didn't like the first generation, but the second-generation was on my radar; I like the low-key, yet elegant styling, and the automotive media raved that the road-handling was significantly cleaned up from its nautical predecessor's. I'd still consider one if a replacement event unexpectedly befell my TL, but developments since have made that something of a long shot.
  • Deanst “Switching to EVs will be end of the Dodge brand. Nobody wants EVs.”Tesla, a brand which only sells EVs, is the number 1 luxury vehicle seller in America. But do go on…….
  • Randall Tefft Sundeen Oldsmobile was ALWAYS my favorite GM marque ! I remember as a kid you couldn't walk down the street without tripping on one! In 1977 and 1984 respectively olds sold. Million units, GM's second biggest seller as well as being the test brand for new options (Why take a risk with Cadillac?) The first CLUTCHLESS MANUAL , the first ELECTRIC POWER WINDOWS the first AUTOMATIC not to mention in 1974 the first airbag. Iam fortunate enough to live in a warm climate where old cars are plentiful sadly very few Oldsmobiles. Many features we take for granted were developed by this special brand
  • Conundrum Some parts of the US are in a bad way due to drought and climate change as well, but Posky manages to avoid mentioning Lake Meade, Musk going bananas over no water for his Nevada gigafactory, a few wildfires and floods here and there. No let's have a chuckle over China's experience instead, and chuck in the name Toyota in the headline as a draw. Musk is demanding China ensures his Shanghai factory gets plent 'o power, because that's what spoilt billionaires do. Me, me, me first. Doesn't work when everyone's gasping for breath.Kind of seems to me that avoiding the obvious is the American way. Let's burn some more coal and make things much better! Yeah!Meanwhile, apparently whoever runs this website on a technical basis needs to go back to training school.meanwhileThe way this site "operates", which it mainly doesn't, is a complete farce!Let's have an opinionated article on that.