A recent report claims that electric car manufacturer Tesla’s new cost-cutting measures include no longer ordering toilet paper for the company’s facilities. Some employees are reportedly bringing their own toilet paper to work with them.
Electrek reports that Elon Musk’s Tesla has implemented a number of intense cost-cutting measures as the automaker attempts to become profitable again. One of these new measures reportedly includes a review of all company “parts, salary, travel expenses, and rent,” and the first casualty of this new review process has been discovered —company toilet paper.
As part of cost-cutting measures, Company CFO Zach Kirkhorn will be reviewing and signing every page of outgoing payments while CEO Elon Musk will be reviewing and signing every tenth page. Musk warned that company cost-cutting measures will be “hardcore,” now sources say that Tesla facilities are going to extreme measures to reduce costs, including cutting down the ordering of office supplies and even refusing to order toilet paper.
One source stated that employees have begun bringing their own toilet paper from home in order to reduce overheads. Tesla is also cutting down on other employee benefits such as stipends given to employees for cellphone plans. Expenses that are not considered to be “essential” for the production, sales, and delivery of Tesla vehicles are reportedly being reviewed.
Tesla lost $700 million last quarter and has struggled in recent months. During a recent call with investors, Morgan Stanley equity analyst Adam Jonas, a long-time Tesla bull who has recently grown skeptical of the company, expressed concerns over Tesla’s future. Issues raised on the call include signs that demand for Tesla’s electric vehicles appears to be slowing, poor sales in China, and lack of excitement over the announcement of the company’s Model Y SUV.
Jonas stated during the call that as recently as 2018 “Tesla was seen as a growth story,” but “today, supply exceeds demand, they’re burning cash. Nobody cares about the Model Y. … Tesla is not seen as a growth story, at least the feedback we were getting, which is quite one-sided … it’s seen more as a distressed credit story and restructuring story.”