Elon Musk Cost Control Letter

Discussion in 'The Water Cooler' started by La Li Lu Le Lo, May 18, 2019.

  1. La Li Lu Le Lo

    La Li Lu Le Lo Veteran

    Joined:
    May 29, 2010
    Messages:
    5,198
    Likes Received:
    2,502
    Here is a letter written by Elon Musk asking his employees to implement hardcore cost cutting measures.

    https://www.cnbc.com/2019/05/17/elon-musk-calls-for-cost-control-in-memo-to-employees.html

    From: Elon Musk

    To: Everybody

    Date: May 16, 2019

    As mentioned at the company talk, it is extremely important that we examine every expenditure at Tesla no matter how small, and be sure that it is critical.

    When making hundreds of thousands of cars, battery packs and solar systems, even a ten cent savings could be worth over $50,000 a year. There are over 10,000 unique parts and processes at Tesla, so making small improvements across the board has a giant cumulative impact.

    At the same time, we must also continue to make our products subtly better in thousands of small ways.

    It is important to bear in mind that we lost $700 million in the first quarter this year, which is over $200 million per month. Investors nonetheless were supportive of our efforts and agreed to give us $2.4 billion (our net proceeds) to show that we can be financially sustainable.

    That is a lot of money, but actually only gives us approximately ten months at the first-quarter burn rate to achieve breakeven. It’s vital that we respect the faith investors have shown in Tesla, but it will require great effort to do so.

    That is why, going forward, all expenses of any kind anywhere in the world, including parts, salary, travel expenses, rent, literally every payment that leaves our bank account must be reviewed, confirmed as critical and the top of every page of outgoing payments signed by our CFO.

    I will personally review and sign every 10th page.

    Please examine closely every expense where responsibility is, or probably should be, assigned to your group. If in doubt, assume it is on your plate, so that we don’t have anything slip through the cracks.

    This will take at least a few weeks to get right. Please don’t worry if it isn’t correct at first.

    This is hardcore, but it is the only way for Tesla to become financially sustainable and succeed in our goal of helping make the world environmentally sustainable.

    Thanks again for your excellent work,

    Elon

    Too bad for Elon Telsa is not Amtrak..... then Telsa could be wasteful, lose money every year, and stick it to the taxpayers in a Democrat money laundering scheme.
     
  2. Dog Wonder

    Dog Wonder Veteran

    Joined:
    Jan 1, 2004
    Messages:
    13,309
    Likes Received:
    3,820
    Is it Tesla, Telsa, or Tulsa that isn't Amtrak?
     
    • Funny Funny x 1
  3. DTSPC20

    DTSPC20 Advanced

    Joined:
    Aug 12, 2017
    Messages:
    204
    Likes Received:
    4
    Here's the thing about Elon Musk. Brilliant entrepreneur and a true visionary, not the best manager in the world. He's actually quite nasty.
    https://sodasays.com/blogs/meet-our-makers/think-your-boss-is-bad-be-grateful-hes-not-elon-musk
    https://qz.com/1495131/former-tesla-executive-says-employees-in-abusive-relationship-with-elon-musk/

    Not sure why you mentioned Amtrak. I'm guessing whatever brain dead talk radio show you listen to talked about it.
    Before you say stupid things you should google. Try "tesla govt subsidies". Here's what I found.
    https://realmoney.thestreet.com/inv...in-product-isn-t-cars-it-s-subsidies-14769263
     
  4. DTSPC20

    DTSPC20 Advanced

    Joined:
    Aug 12, 2017
    Messages:
    204
    Likes Received:
    4
    I hear crickets.
     
    • Agree Agree x 1
  5. La Li Lu Le Lo

    La Li Lu Le Lo Veteran

    Joined:
    May 29, 2010
    Messages:
    5,198
    Likes Received:
    2,502
    Well, it really is very simple. However, since you can't grasp the simple I will spell it out for you.

    Tesla stated they profited $312 million in the third quarter and have taken steps to cut cost for future profitability. I will admit that Tesla has benefited from government subsidies (though most of that was targeted toward the consumer) but so have many companies manufacturing "green" tech. Elon knows the subsidies will dry up eventually and he looks to be taking steps to turn Tesla into a strong independent company.

    Amtrak on the other hand has been losing money for years and has been sustained by the tax payers. They have taken no steps toward independence because they have overpaid UNION workers there feeding a UNION that is making large donations to the corrupt Democratic Party. The whole thing is a giant money laundering scheme for the Democratic Party.

    Get it now?
     
  6. keeptheodds

    keeptheodds Veteran

    Joined:
    Aug 9, 2005
    Messages:
    634
    Likes Received:
    9
    Digging for straws on that last one. As for the first two it wouldn’t be the first time a disgruntled employee had nothing but shet to say. The second article sounds as if he’s pushing for absolute success for his company. His policies may be strange to a union worker but this is the way the real world operates, production is everything. Especially for a startup that is destined to change the economics of a country if not the world. There is not a man with such ambitions that hasn’t gone through such scrutiny. I may not agree with everything he does but I do support his goals 100%. I could care less about individuals and their feelings in this process.
     

Share This Page