Tesla Inc. CEO Elon Musk told employees on Thursday that he will increase scrutiny of the company's expenses in his latest initiative to cut costs at the electric car maker.
Tesla earlier this month closed a $2.7 billion offering of stock and convertible notes, giving it much needed cash as it ramps up production.
Musk, in an email to employees, said the company's net proceeds from the offering gave Tesla only 10 months to achieve breakeven at the rate it burned cash in the first quarter.
"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," Musk said.
Tesla shares fell on the news, closing down 7.6 percent to $211.03.
Tesla's attempts to cut costs are not new. In April 2018, in an email sent to employees, Musk said he had instructed his finance team to "comb through every expense worldwide" to find possible cuts.
More recently, Tesla laid off 9 percent of its workforce in June 2018 and another 7 percent in January.
The cost-cutting initiative comes after a tumultuous year for Tesla, which has seen analysts and investors cast doubt on its ability to produce, sell and deliver enough cars to make a sustainable profit.