Tesla to Lay Off More Than 10% of Workforce, Report Says

[ice-capades]

Tesla to Lay Off More Than 10% of Workforce, Report Says

https://www.foxbusiness.com/economy/tesla-to-lay-off-more-than-10-of-workforce-report-says

 

 

Tesla is preparing to lay off more than 10% of its global workforce following weak first quarter deliveries and increasing competition in the electric vehicle (EV) market, according to a report.

 

A leaked internal email from CEO Elon Musk said that the automaker is looking to cut costs and increase productivity after years of rapid growth that have led to duplication in some roles and functions in certain areas of the company, tech publication Electrek reported on Monday.

 

The world's most valuable automaker employs about 140,473 workers worldwide, Reuters reported, citing Tesla’s latest annual report. The reported staffing reduction will affect about 15,000 employees.

 

Tesla did not immediately respond to FOX Business Digital’s request for comment.

 

The reported lay-offs come after Electrek reported that Tesla had told managers to identify critical team members, paused some stock rewards, canceled some worker’s annual reviews and reduced production at Gigafactory Shanghai.

 

Earlier this month, it was reported that Tesla's quarterly deliveries declined for the first time in nearly four years and fell short of Wall Street analysts' estimates. Tesla announced at the time that it delivered roughly 387,000 vehicles in the first quarter – well below expectations of about 443,000 and an 8.5% decrease compared to the first quarter of last year.

 

The automaker has also faced an escalating price war in China, a key market for the EV maker, as low-cost competitors like BYD forced it to reduce prices and cut into its margins.

 

Reuters also reported earlier this month that Tesla was abandoning its long-touted plans to produce a budget-friendly starter car, purportedly called Model 2, that was expected to start at $25,000. 

 

Musk at the time accused Reuters of "lying," though the outlet responded that he didn’t identify any specific inaccuracies in its reporting.

 

Edited April 15 by ice-capades
Additional Content

[Gurgeh]

Tesla is finding it hard to compete in China with the Chinese government's massive subsidies of all aspects of EV production. See: https://electrek.co/2024/04/12/china-gave-byd-an-incredible-3-7-billion-to-win-the-ev-race/ and  https://asia.nikkei.com/Spotlight/Electric-cars-in-China/China-gives-EV-sector-billions-of-yuan-in-subsidies

[Rick73]

Interesting that Steve Westley, former Tesla board member, in linked video mentions Model 2 as if still in play, contradicting Reuters April 5th report that it had been cancelled.  I thought I heard him also say Cybertruck had been a flop, but not sure I heard correctly.

 

From what I’ve read, most analysts agree Tesla needs an affordable Model 2 far more than Robotaxi.  Cybertruck was a huge mistake in my opinion, given those efforts and capital investment could have been applied towards a mass-market vehicle for value-conscious buyers.

[transitman]

After watching the Masters, if I had the money, I would buy a Mercedes Maybach EV. Move over Tesla, the EV market wants to pass you in the fast lane.

Edited April 15 by transitman

[Deanh]

this is just a reaction to the mandated pay increase to $20 an hour....

[Andrew L]

8 hours ago, Rick73 said:

Interesting that Steve Westley, former Tesla board member, in linked video mentions Model 2 as if still in play, contradicting Reuters April 5th report that it had been cancelled.  I thought I heard him also say Cybertruck had been a flop, but not sure I heard correctly.

 

From what I’ve read, most analysts agree Tesla needs an affordable Model 2 far more than Robotaxi.  Cybertruck was a huge mistake in my opinion, given those efforts and capital investment could have been applied towards a mass-market vehicle for value-conscious buyers.

 

I think CyberTruck was just to shout "look at me" so far the reviews all say it's lousy at being a truck.  I saw a 2nd one the other day on my way home and as I mentioned in another thread it's even more hideous in person. 

 

Are there any plans to redesign the rest of the lineup?  Model S is getting pretty long in the tooth design wise.

[Rick73]

12 hours ago, Andrew L said:

Are there any plans to redesign the rest of the lineup?  Model S is getting pretty long in the tooth design wise.

Agree a redesign is due, but have no idea of when that might happen.  I don’t follow expensive BEVs closely because they don’t make as much sense to me, but recently read that Models 3 and Y account for 96% of Tesla auto sales (not sure if that percent was US, Europe, or worldwide), so I would guess Tesla will not prioritize an S or X redesign.  Perhaps it will make most sense when new technology supports a major update.  I’ve seen speculation that new batteries like 4680 or faster-charging battery design may be catalyst for a redesign.  It seems to me that they presently have bigger issues to solve, though I understand the Model S is their flagship and needs a new and bigger image.

[Andrew L]

43 minutes ago, Rick73 said:

Agree a redesign is due, but have no idea of when that might happen.  I don’t follow expensive BEVs closely because they don’t make as much sense to me, but recently read that Models 3 and Y account for 96% of Tesla auto sales (not sure if that percent was US, Europe, or worldwide), so I would guess Tesla will not prioritize an S or X redesign.  Perhaps it will make most sense when new technology supports a major update.  I’ve seen speculation that new batteries like 4680 or faster-charging battery design may be catalyst for a redesign.  It seems to me that they presently have bigger issues to solve, though I understand the Model S is their flagship and needs a new and bigger image.

 

There are handful of Model S in my neighborhood but most of the Teslas I have seen in my neighborhood are 3s so that makes sense, price is also a big factor.

[akirby]

I’ve been saying for years that Tesla was cutting costs by not doing regular refreshes and redesigns and eventually that would catch up with them.

[DeluxeStang]

52 minutes ago, akirby said:

I’ve been saying for years that Tesla was cutting costs by not doing regular refreshes and redesigns and eventually that would catch up with them.

The lack of redesigns and refreshes, but also the fact that they're making very little effort to evolve their design language. It's practically guaranteed when the model 2 is revealed, if it's revealed, that it looks like a model 3, which looked like a model s. So their cars are patterned after designs that are more than a decade old. 

[tbone]

5 minutes ago, DeluxeStang said:

The lack of redesigns and refreshes, but also the fact that they're making very little effort to evolve their design language. It's practically guaranteed when the model 2 is revealed, if it's revealed, that it looks like a model 3, which looked like a model s. So their cars are patterned after designs that are more than a decade old. 

The model S is still a good looking car, but as you have stated the design language if 10 years old, so what is the incentive to upgrade to a new car if you already have one.  It’s not a surprise the S sales are low now.  Lack of refreshes on virtually any car will spell doom for sales.  

[akirby]

Just now, tbone said:

The model S is still a good looking car, but as you have stated the design language if 10 years old, so what is the incentive to upgrade to a new car if you already have one.  It’s not a surprise the S sales are low now.  Lack of refreshes on virtually any car will spell doom for sales.  

Bingo.  Especially for folks who lease.  I can only laugh about rperez817 pointing out that Tesla was making 30 changes per day.

[DeluxeStang]

27 minutes ago, akirby said:

Bingo.  Especially for folks who lease.  I can only laugh about rperez817 pointing out that Tesla was making 30 changes per day.

One of the biggest shifts in the auto industry that you don't see many people talking about, is the purchase of a new car going from a need, to a want. Some brands get it, others don't. 

 

20-30 years ago, and beyond that, a lot of consumers would genuinely be needing a new car. Their current car would be having lots of issues by the time it was a few years old, or it would be unsafe, or it wouldn't fit their evolving needs. So the needs of the consumer really drove new car sales. 

 

I'd say new cars are much more of a want now. With how safe, reliable, and versatile most modern vehicles are, the days of truly needing to replace your car are dying down. Most of the time, someone's car works perfectly fine, it meets all their needs.  So the only way to keep new car as sales going strong is to produce cars people really want. Coming out with a design, or some tech that people are drawn to, that they can't experience with their current car. 

 

That's where I can see brands like Toyota/Honda struggling in the future. Because they've built their entire business's around those consumers who prioritize needs over wants. 

[akirby]

25 minutes ago, DeluxeStang said:

One of the biggest shifts in the auto industry that you don't see many people talking about, is the purchase of a new car going from a need, to a want. Some brands get it, others don't. 

 

20-30 years ago, and beyond that, a lot of consumers would genuinely be needing a new car. Their current car would be having lots of issues by the time it was a few years old, or it would be unsafe, or it wouldn't fit their evolving needs. So the needs of the consumer really drove new car sales. 

 

I can agree with that.  Daughter’s escape is 10 yrs old.  Still looks and drives great.

 

27 minutes ago, DeluxeStang said:

 

 

That's where I can see brands like Toyota/Honda struggling in the future. Because they've built their entire business's around those consumers who prioritize needs over wants. 

Gotta disagree on that one.  People in the 90s were buying new Accords and Camrys and Civics and Corollas every 3-4 years even though they were pretty much bullet proof.

[Rick73]

1 hour ago, DeluxeStang said:

The lack of redesigns and refreshes, but also the fact that they're making very little effort to evolve their design language. It's practically guaranteed when the model 2 is revealed, if it's revealed, that it looks like a model 3, which looked like a model s. So their cars are patterned after designs that are more than a decade old. 

Electrification may lead to a different automotive reality when it comes to frequent redesigns because basic shape affects function far more than with ICE or hybrid vehicles.  If designers deviate too far from optimized shape, vehicle driving range may be reduced too much due to added highway aero drag.

 

I agree a Tesla Model 2 (if it happens) will likely be very similar to Models 3 and Y.  I expect or would like to see a scaled down version of Model Y hatchback roughly size of Civic/Corolla; which to me is not necessarily a bad thing.  I know it’s not a direct comparison, but think how similar commercial airplanes can look even when size is vastly different.  Obviously they are not sold retail, but appearance still matters and general shape are similar from a small Embraer 170 to Boeing 737, Dreamliner, or 777.  What works best works across wide range of sizes.  I don’t expect automobiles will follow same trend of looking almost the same, but similarities within a brand seems unavoidable.

[jpd80]

In other news, entitled billionaire wonders why Tesla buyers don't like him anymore after he started calling them woke…

[silvrsvt]

16 hours ago, Rick73 said:

If designers deviate too far from optimized shape, vehicle driving range may be reduced too much due to added highway aero drag.

 

I think your giving shape too much credit for aerodynamics-just look at some of the older cars (that don't have the best Cd numbers) that have aerodynamic improvements from people trying to eke out MPG gains. The vast majority of them are impractical from a design or manufacturing perspective with a new car. 

 

Not to mention if easy charging (5-10% to 80% in 10-20 minutes or so) is available, overall range issues become a moot point if typical 2 box CUV gets 10-20% less range then an "ugly" sedan type vehicle. 

[Rick73]

23 hours ago, silvrsvt said:

Not to mention if easy charging (5-10% to 80% in 10-20 minutes or so) is available, overall range issues become a moot point if typical 2 box CUV gets 10-20% less range then an "ugly" sedan type vehicle. 

The silhouette Tesla teased of the Model 2 is not all that different from what has become the modern fastback sedan shape.  To me the back end of many modern sedans look very similar, whether it’s a Ford Mondeo, Chevy Malibu, Honda Accord, Toyota Camry, Nissans, Kia, etc.  I personally don’t see the fastback sedan look as “ugly” but accept aesthetics is extremely subjective.  For example, I always preferred the fastback versions of Mustangs going back to my first car, a 1965 bright red Mustang.

 

A fastback roofline “today” contributes significantly to lower drag, which enables higher highway MPG in ICE and hybrid vehicles, and added range in BEV.  The electric Mercedes EQS pictured below claims to be most aerodynamic production car, beating out Tesla S and Lucid Air.  Obviously for a city car like Fiat 500e aerodynamics isn’t as important due to lower driving speeds and limited required range, but for versatile vehicles capable of longer trips, real-world highway range is still very important.  Just yesterday my son told me that if he doesn’t do close to 75 MPH in his Tesla on way to work he could get run over; and that’s inside city limits.  Given the distance he commutes to work, added range at high speeds comes in very handy.

 

 

 

[silvrsvt]

2 hours ago, Rick73 said:

The silhouette Tesla teased of the Model 2 is not all that different from what has become the modern fastback sedan shape.  To me the back end of many modern sedans look very similar, whether it’s a Ford Mondeo, Chevy Malibu, Honda Accord, Toyota Camry, Nissans, Kia, etc.  I personally don’t see the fastback sedan look as “ugly” but accept aesthetics is extremely subjective.  For example, I always preferred the fastback versions of Mustangs going back to my first car, a 1965 bright red Mustang.

 

A fastback roofline “today” contributes significantly to lower drag, which enables higher highway MPG in ICE and hybrid vehicles, and added range in BEV.  The electric Mercedes EQS pictured below claims to be most aerodynamic production car, beating out Tesla S and Lucid Air.  Obviously for a city car like Fiat 500e aerodynamics isn’t as important due to lower driving speeds and limited required range, but for versatile vehicles capable of longer trips, real-world highway range is still very important.  Just yesterday my son told me that if he doesn’t do close to 75 MPH in his Tesla on way to work he could get run over; and that’s inside city limits.  Given the distance he commutes to work, added range at high speeds comes in very handy.

 

 

I see what I said went completely over your head-people will not buy a sedan type vehicle (as borne out by sedan sales in the general market) due to the perceived improvement a two box vehicle gives them when it comes to having a more flexible vehicle that can do more (since it has more interior space) then a sedan. The increase in MPGs or Range isn't worth it to the consumer, they rather have a Swiss army knife of a vehicle then be boxed in to a sedan/hatchback shape, because vehicles are more expensive and people are keeping them longer. 

 

If a two box shape only impacts range 10-20% overall vs a sedan fastback shape, people will give up that additional range, even more so if charging is almost as easy as stopping at a gas station with longer wait. 

[Rick73]

58 minutes ago, silvrsvt said:

I see what I said went completely over your head

It is hilarious that you and a couple of others have convinced yourselves that when others don’t agree with you it must be because they don’t understand your point, rather than they simply think your ideas, information or conclusions are just wrong.  You’re not so brilliant I can’t understand what you write; I often just disagree with your point of view because I think you’re wrong.

 

Every single time I think you have changed and become more professional based on latest posts, and I risk communicating directly with you by responding, I end up regretting it.  You can not help yourself from adding offensive, insulting and unnecessary language with sole purpose of being disrespectful.  And it’s not just with me, you do it to others as well.  Why in the world you would do that is the only thing that goes over my head.  It makes no sense, especially since you are a moderator and should behave at a higher level.

 

[ice-capades]

29 minutes ago, Rick73 said:

It is hilarious that you and a couple of others have convinced yourselves that when others don’t agree with you it must be because they don’t understand your point, rather than they simply think your ideas, information or conclusions are just wrong.  You’re not so brilliant I can’t understand what you write; I often just disagree with your point of view because I think you’re wrong.

 

Every single time I think you have changed and become more professional based on latest posts, and I risk communicating directly with you by responding, I end up regretting it.  You can not help yourself from adding offensive, insulting and unnecessary language with sole purpose of being disrespectful.  And it’s not just with me, you do it to others as well.  Why in the world you would do that is the only thing that goes over my head.  It makes no sense, especially since you are a moderator and should behave at a higher level.

 

 

And now you're using personal attacks to get your point across? Knock it off!

[akirby]

39 minutes ago, Rick73 said:

It is hilarious that you and a couple of others have convinced yourselves that when others don’t agree with you it must be because they don’t understand your point, rather than they simply think your ideas, information or conclusions are just wrong.  You’re not so brilliant I can’t understand what you write; I often just disagree with your point of view because I think you’re wrong.

 

Every single time I think you have changed and become more professional based on latest posts, and I risk communicating directly with you by responding, I end up regretting it.  You can not help yourself from adding offensive, insulting and unnecessary language with sole purpose of being disrespectful.  And it’s not just with me, you do it to others as well.  Why in the world you would do that is the only thing that goes over my head.  It makes no sense, especially since you are a moderator and should behave at a higher level.

 

Just stop.  You’re the one obsessed with maximum efficiency.  You claim you aren’t but that’s all you post about.  Consumers have proven without a doubt they’re willing to forego some efficiency and pay a little more for more utility and boxier styling.  To claim otherwise is silly which is why you get pushback on those statements.  It’s borderline trolling.  So knock it off.