Is Tesla on the verge of bankruptcy?

Is Tesla on the verge of bankruptcy?

It seems that even despite all of their plans the future doesn’t really looks very bright for Tesla.

Not so long ago the company got additional $2.7 billion in investment donations but this money is going to buy electro cars manufacturer a little less than a year. What does that mean? That means that in just 10 months Tesla can go bankrupt.

The only thing that can save Tesla is restructuring their budget. This became known to the public after Elon Musk – founder of the company posted online an open letter for everyone to know about the problems that Tesla are having currently.

It seems that the manufacturer doesn’t really pull in any income. The process of producing electro cars is extremely expensive and Tesla are more likely to spend more than they are bringing in. In order to cut down expenses Musk is ready to hire groups of financial experts who can tell him what expenses can be easily cut without doing any damage to the company. Such categories as spare parts for the cars, payroll, workers’ trips and space renting are going to be cut the first.
Media are speculating saying that Musk didn’t post the letter randomly but rather he is giving time to the managers to change their spending policies and get the business of their sub-divisions in order.

This is not the first time when Tesla has to re-arrange their expenses. Last summer the company had to let go about 9 percent of their staff. 7 more percent had to be let go this January.

According to Mush cutting down expenses is the only thing that is going to help Tesla stay afloat and find their financial stability.