Tesla to lay off more than 10% of staff globally as sales fall
Source: Reuters
April 15 (Reuters) - Tesla (TSLA.O) will lay off more than 10% of its global workforce, an internal memo seen by Reuters on Monday shows, as it grapples with falling sales and an intensifying price war for electric vehicles. The world's largest automaker by market value had 140,473 employees globally as of December 2023, its latest annual report shows. The memo did not say how many jobs would be affected. Some staff in California and Texas have already been notified of layoffs, a source familiar with the matter told Reuters, declining to be named due to the sensitivity of the subject.
"As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity," Tesla CEO Elon Musk said in the memo. "As part of this effort, we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally," it said.
The layoffs follow an exclusive Reuters report on April 5 that Tesla had cancelled a long-promised inexpensive car, expected to cost $25,000, that investors have been counting on to drive mass market growth. Musk had said the car, known as the Model 2, would start production in late 2025. Shortly after the story published, Musk posted "Reuters is lying" on his social media site X, without detailing any inaccuracies. He hasn't commented on the car since, leaving investors and analysts to speculate on its future.
Reuters also reported April 5 that Tesla would shift its focus to self-driving robotaxis built on the same small-car platform. Musk posted on X that evening: "Tesla Robotaxi unveil on 8/8," with no further details. Tesla could be years away from releasing a fully autonomous vehicle with regulatory approval, according to experts in self-driving cars and regulation.
Read more: https://www.reuters.com/business/autos-transportation/tesla-lay-off-more-than-10-its-staff-electrek-reports-2024-04-15/
EYESORE 9001
(25,949 posts)Now if only the US government would break ties with this lunatic.
marble falls
(57,116 posts)ArkansasDemocrat1
(1,202 posts)Blue Owl
(50,445 posts)With a tRump-like clownstick at the center of it all....
PortTack
(32,779 posts)Prepare for our next phase of growth. The growth being the metal recyclers and junk piles. Gonna invest in that business too? Might be a good one for you.
getagrip_already
(14,768 posts)Any MBA would find that a no brainer.
So how about it Tesla?
Voltaire2
(13,079 posts)He has a total compensation package with 55B in stock options. That is not annual it is one time. It is also on hold due to a Delaware Court ruling that it was ridiculously excessive.
But yeah he should go away. The brand would immediately improve.
Voltaire2
(13,079 posts)Huge capital expenditures, lots of competition, and getting stuck with inventory can be fatal.
This is Teslas first big test since it joined the big leagues. Too bad they are stuck with a CEO with the maturity of a 12 year old edge lord.
Yavin4
(35,443 posts)People will always buy huge gas guzzlers. The best alternative is more robust public transportation and tax larger vehicles for their size.
Voltaire2
(13,079 posts)EV's are undeniably better for the environment, despite the FUD campaigns from OilCo. While I agree that 'robust public transportation' is even better, the same people who you claim 'will always buy huge gas guzzlers' will also continue to buy fossil fuel based cars unless there are economic incentives and disincentives to steer them away from them. Luckily we could both disincentivize ICE engine vehicles and improve public transportation and smooth the transition with EVs and PHEVs. Of course we instead aren't going to do much of anything as there is a major political party that opposes all reforms.
Yavin4
(35,443 posts)Only a matter of time until his whole house of cards fall. And fall they will.
Voltaire2
(13,079 posts)that made mass production evs a reality. Also Musk did not found Tesla he acquired it.
Holmes had no product at all, it was bullshit from the beginning to the end.
OnlinePoker
(5,723 posts)Without Musk's money and influence, Tesla would likely have failed and EV adoption would be nowhere near as advanced. Hate the man, but the company has done a good job moving the tech forward and showing the rest of the auto industry that people will buy them. The issue with Tesla is all their vehicles look dated now and the Cybertruck is a monstrosity.
Voltaire2
(13,079 posts)He wasn't. And yes without him Tesla might indeed have failed. And I agree that the ev tech tesla created and advanced is good. That was more or less the point of my post. The people knocking Tesla are mistaken.
Traurigkeit
(193 posts)ArkansasDemocrat1
(1,202 posts)Let's see if it works for him.
I'd rather get a hybrid Camry or a Leaf with a dedicated charger in my garage once I build.
Comfortably_Numb
(3,809 posts)dalton99a
(81,527 posts)jmowreader
(50,560 posts)I will name three.
Problem 1: a 2024 Model S is basically the same car as a 2019 Model S. Since these cars last a long time as long as you dont get in an accident in one, this discourages trade-ins.
Problem 2: way too frequent recalls. But recalls can happen over the air! Yeah, and my 2020 Volkswagen hasnt been recalled once since I got it.
Problem 3: thanks to Tesla working with the rest of the auto industry to make NACS the standard way to charge an EV Teslas big advantage, the Supercharger network, has gone away. Now that you can charge any EV from a Tesla charger its pretty safe to buy one that doesnt have a T on the nose.
Voltaire2
(13,079 posts)You must be lucky. Recalls happen across the industry. Tesla is neither the worst nor the best.
jmowreader
(50,560 posts)All the cars on that list are based on the Golf chassis.
Voltaire2
(13,079 posts)And tesla is neither the worst or the best in this quality metric.
Traurigkeit
(193 posts)yayaya quite unlikely , the GREEDY bastard
maxsolomon
(33,345 posts)Back before he bought Twitter, there were 3 or 4 Teslas among my co-workers. No one else has bought one since.
FakeNoose
(32,658 posts)Suddenly sales would pick up and the company would run like clockwork.