Tesla cutting 10% of workforce

Is the Cybertruck killing Tesla? Tesla's only product launch in the last six years has used up tremendous resources and is still not ready for prime time. The Cybertruck is struggling to sell to ardent fans at its current price. Tesla's future is tied to robotaxis that may or may not be put into service this decade. With Chinese competition on the rise, Tesla has a million reasons to be concerned. #ElonMusk is just one of them. #EV #Cybertruck Read more: https://lnkd.in/ggyjBP2F

Times are starting to get tough for Tesla. The electric vehicle automaker had been riding high, with quarter after quarter of successive growth and plenty of profits in the process. But lately, that success has mostly been due to a series of price cuts meant to tempt customers to buy into an aging lineup. This March, the company reported its first quarterly decline since 2020. Now, it plans to lay off more than 10 percent of its workforce, according to an internal memo seen by Reuters. "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 told employees in the memo. Musk has pursued a strategy of relentless cost-cutting, but all those price cuts have meant Tesla's once-envied profit margins are now nothing special. Read more below via Ars Technica. https://trib.al/CTVKMPP

Tesla has announced a large reduction in staff on the heels of a disappointing Q1 delivery report, following in the footsteps of legacy automakers and pure-play EV makers, per an internal memo. Noted Tesla bull Dan Ives?at Wedbush Securities warned the layoffs were a negative sign for Tesla, as seen in Monday’s stock move lower. Ives has a $300 price target and Buy rating on the stock. “This is an ominous signal that speaks to tough times ahead for Tesla as Musk navigated this Category 5 storm,” Ives said in a comment to Yahoo Finance. “Demand has been soft globally, and this is an unfortunately necessary move for Tesla to cut costs with a softer growth outlook.” https://lnkd.in/e4_JcA5C

For decades, efforts by the UAW to unionize foreign automakers' big car plants in the US South have failed. Now it looks like that's about to change, with far-reaching consequences. I traveled several times to Tennessee and Alabama for this story about why the union is poised for a historic victory this week at Volkswagen in Chattanooga, and how that could buoy its efforts everywhere from Mercedes to Tesla. “When we started this campaign, you didn’t talk very openly in the plant about a union,” one of the hundreds of VW workers on the union organizing committee there told me. “Now it’s all we talk about.” Here's an unpaywalled "gift" link: https://lnkd.in/gBAEXsMQ

Elon Musk?announced in an internal memo that Tesla plans to cut over 10% of its global workforce. The Tesla CEO said that as the EV maker grew rapidly, there's been some "duplication" of roles. He added that the cuts will help it become?"lean, innovative and hungry for the next growth phase." Jyoti Mann and Grace Kay report.

Executive exodus and a 10% cut to workforce at Tesla. We reported that Drew Baglino resigned from Tesla. Baglino had been at Tesla since 2006 and was SVP of Powertrain/Energy Engineering. He was one of just four named executive officers and integral to the work the company was doing on everything from EVs to energy storage and next gen 4680 cells. Drew posted on social media a few hours after our story to confirm his departure. Tesla's Public Policy chief Rohan Patel also has left the company, we reported. When you take in to account it follows key names in Tesla's semicondcutor team leaving earlier this year and Zach Kirkhorn leaving in August, its a lot of intellectual capital and experience out. Still: am told that actually things are going well - particularly in the energy division - and a reason for Baglino leaving is he felt the place was in good hands. Last night Musk told staff around the world Tesla would cut 10% of more of its global workforce. The reasons are clear: pursuit of cost cuts and productivity in a tough environment. But Tesla's grown quickly. And Musk cited the number of duplicate roles in his reason for the RIF. 10% of Tesla's staff is around 14,000 people. So its sizable, the biggest RIF ever. Read the reporting from me and Dana Hull on Bloomberg News. Edited Craig Trudell Shelly Banjo and Richard Clough

10% of Employees! What started this weekend as rumors of a MASSIVE LAYOFF at Tesla this week is true... exit e-mails happened late last night. This is one of the biggest #layoffs we have seen in quite some time and certainly this year so far. Rumor has it there were delayed performance reviews earlier this year. After a tumultuous Q1 and days after Tesla settled the lawsuit over the fatal autopilot crash... it seems it is all hitting the company big time. Last month, #Tesla reduced production at the Gigafactory in Shanghai- which was the busiest factory. They also told Austin Gigafactory employees that Cybertruck production shifts will be shorter. Global #EV demand is easing with worsening economic conditions. Despite Tesla slashing prices, sales are still down. Elon #Musk blames the sales down turn on high interest rates and the global economy. Tesla might be facing a tough road ahead. TSLA ???? Were you impacted? https://lnkd.in/gAhX-YWa

Tesla will lay off more than 10% of its workforce, tech publication Electrek.co reported on Monday, citing an internal memo. Tesla told managers to identify critical team members, and paused some stock rewards while canceling some employees’ annual reviews, according to the report, which added that the firm also reduced production at Gigafactory Shanghai. The world's largest auto-maker by market value had 140,473 employees globally as of December 2023, according to its latest annual report. The reported cuts will affect about 15,000 workers. Tesla, which is set to report its quarterly earnings on April 23, reported a decline in vehicle deliveries in the first quarter, its first in nearly four years and also below market expectations. Meanwhile, the company has scrapped plans to produce an inexpensive car, abandoning one of Musk's longstanding goals to make affordable EVs for the masses. #tesla #elonmusk #ev #cars #tech https://lnkd.in/gd43NqZa

Tesla will reduce global headcount by more than 10% as the carmaker grapples with a slowdown in electric vehicle demand. There are a few questions for the EV market: a) Even if EV demand continues to grow, will it be slower than expected?; b) Will consumers prefer BEV or hydrid? c) More entrants will mean more competition, especially at the entry level and from China. How can firms cope with the extra supply and capacity? #economy #economics #electricvehicle #electricvehicles #china #us #asia #asiapacific #apac #tesla #invest #investing #investment

Last year I was at a favorite conference I speak at where I listened with embarrassment at some speakers extolling the virtues and wonders of #Tesla almost to the point of nauseating and fawning sycophancy. "Yes Nigel, but their market cap is so BIG". And now we are hearing rumors of a massive layoff of possibly 20% of their workforce (up to 28K people) as their share value and sales have all fallen off a cliff, and as they built the biggest white elephant in automotive history since the Ford Edsel. I can't wait for the Simpson's episode on that! The same speakers also lauded Apple. But now they are looking somewhat vulnerable and seeing stock value declining and fears around the future of the iPhone abound. Innovation is slowing. They've stopped talking about both Tesla and Apple in recent articles. So the same speakers are now celebrating Amazon and Microsoft among others as their latest market cap successes. Despite Amazon having a dreadful record towards many employees and suppliers as reported last week. When will commentators realize that market cap is fake money. It vanishes as rapidly as it appears. The customer loses interest and it evaporates. The stock market reacts to emergent events and values plummet. The customer is the absolute arbiter in the value of a company, not the PnL. Yes, healthy books of account are a requisite of a company, but focusing only on the revenue is a short lived way of working. Apple has always made great products (fanboy here), but unless they keep innovating and surprising they will also lose their relevance. Making a profit does not make a great company. Drucker made this clear, and ironically those same speakers also laud the Drucker forum. Irony indeed. If you make products the customer does not want then nothing else really matters. Your business will decline. Tangent: The whole EV industry is in trouble. U.S. Tesla sales were down more than 13% in the first quarter, while Toyota posted a 20% gain. The same speakers bashed Toyota endlessly. Oh the irony. Hybrids are the most in demand vehicles in the US market according to industry press. Sales figures seem to support that. Maybe Toyota's stance on EVs was not far off the mark after all. Listen to the customer! Read more here https://lnkd.in/gPGmdMBz Fingers crossed for the poor employees about to be jettisoned by Musk. #lean #leansixsigma #agile #scrum #flow #flowsystem #complexity #cynefin #management #leadership #innovation #toyotaway #kanban #AI https://lnkd.in/g882dkJi