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Tesla Looking to Shed Financial Baggage

(Credit: Tesla )

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Tesla Looking to Shed Financial Baggage

Elon Musk is looking for dead weight inside Tesla before it begins production of the Model Y, another critical milestone for the electric automaker. This is per an email sent out to employees, which explicitly stated the company has 10 months to break even financially.

If you think this means Tesla’s out of cash, that’s not exactly the case. The automaker got a nice $2.7 billion injection from an offering of stock and convertible notes in early May, but Musk seems to actually be proceeding with caution.

There’s no telling exactly how this cost-cutting effort will take shape. This isn’t the first time Musk has ordered his financial team to comb through everything thoroughly. But something about this time is different: there is a growing number of analysts and investors scrutinizing the profitability of the automaker, some of them former Tesla fans, who are putting immense pressure on Musk to perform.

Talk of Apple making a move to acquire Tesla has once again fired up. It seems like a match made in heaven, with the images of both companies aligning rather well. If Tesla’s stock prices keep dipping, the risk of a takeover will obviously increase. If it’s not Apple, someone will swoop in and take the company, possibly altering its future in a number of ways.

Source: Reuters

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