FREMONT, Calif. - Tesla CEO Elon Musk is taking a dramatic step that he hopes will help lead the innovative automaker toward profitability.
Starting on Monday, which is headquartered in Palo Alto and has a manufacturing plant in Fremont, the company is cutting back on outside contractors.
Musk said, “It’s time to scrub off the barnacles," meaning that third-party contractors will not be allowed into Tesla facilities unless a Tesla employee is willing to vouch for the quality of their work.
According to Gizmodo, Musk sent out an email to employees letting them know about this new policy.
It's not clear how many outside contractors could be denied access to facilities.
During Tesla's first quarter earnings call last week, Musk told investors the number of third-party contractors had gotten out of hand and he promised a crackdown.
The electric carmaker continues to lose money as Tesla struggles to increase production of its Model 3 Sedan. Musk said Tesla should be turning a profit later this year.