The New York Times reported on Tuesday that Musk wouldn't pay the travel invoices that were racked up before he took over the company.
Executives at the company racked up hundreds of thousands of dollars in travel invoices before the billionaire's acquisition, according to current and former employees. The people said that they were going to pay the invoices.
The former and current employees told The Times that Musk refused to pay the bills when he was the owner of the company. People working for Musk said that the travel charges were approved by the previous management.
The current and former workers told The Times that Musk's staff didn't pick up calls from travel vendors since the ownership change.
The total amount of travel invoices was not disclosed. Insider asked for comment made outside of US operating hours.
According to an email sent to employees on Monday, new guidelines have been put in place for work related travel.
Managers have to approve the trip and estimated costs before any arrangements can be made, according to the email.
A senior vice president can spend $20,000 for a work related trip, while a vice president can spend $10,000, a director $5,000, and a manager $500.
The email said that it was cutting back on costs. A number of perks have been discontinued by the company. Free lunches, which Musk said cost more than $400 per meal in the past year, might be slashed as the company said it was moving to a partially paid model.
The email said that the company was facing a challenging economic climate and needed more attention to cost management.