Tesla Shares dipped more than 5% on Friday after a U.S. safety regulator found its Autopilot system was engaged during a fatal Model 3 crash earlier this year. So, Elon Musk has sent out a companywide email. Thursday cautioning employees to take extreme measures to control costs.
According to the news on axios; the Tesla CEO has vowed to “Personally review and sign” every 10th page of outgoing payments.
Musk in Court for Violating Settlement Deal
Tesla CEO Elon Musk arrives at federal court, April 4, 2019, in New York City. A federal judge will hear oral arguments this afternoon in a lawsuit brought by the U.S. Securities and Exchange Commission (SEC) that seeks to hold Musk in contempt for violating a settlement deal. Tesla CEO Elon Musk has told employees in a companywide email Thursday. In which he has told that $2 billion in new funds has raised this month were only enough to get through 10 months. So, it’s reliable if Tesla keeps spending as it did in the first quarter of 2019. He has requested that everyone at the company take “hardcore” measures to pull back on spending.
What Musk Says…?
Musk wrote in the email to employees, which was obtained by CNBC, that he would take extreme action to control spending. He has also urged employees to do the same. So, he said Tesla’s CFO will review and sign every expense going forward. Musk said he will personally sign off on every 10th page of expenses.
Is the Autopilot System Works?
That deadly crash was at least the third where federal investigators have concluded Autopilot was engaged before impact. So, their findings have raised questions about the safety and integrity of its cars and semi-autonomous systems.
Now What Happens
In recent weeks, Musk has touted the company’s future as a self-driving technology business. A business that would be operating robot axis, commercially, taking on not just other electric car makers, but money-losing ride-hailing platforms like Uber and Lyft. So, the Tesla shares drop is not the end of the company but a new and powerful beginning.