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News Tesla Slashes Nine Percent of Workforce

22:12  13 june  2018
22:12  13 june  2018 Source:   automobilemag.com

Elon Musk takes charge of Tesla Model 3 production

  Elon Musk takes charge of Tesla Model 3 production Musk replaces five-year Tesla veteran Doug Field, who has been reassigned.This news comes as no surprise given Tesla's woes of late, with Model 3 production numbers being lower than anticipated, downgraded credit, slipping stock prices and a recent Autopilot-related fatal Model X crash.

Tesla has dropped around 9 percent of its workforce as part of a restructuring plan, CEO Elon Musk revealed on Twitter today. Amid the news, Tesla 's stock fell today. Although it had increased 6. 9 percent earlier in the day, shares were up just 2.6 percent after the announcement.

Tesla hasn't produced nearly as many of its vaunted Model 3 affordable EVs as it expected, which has led to a quarter of those who preordered the vehicle to dem Musk published an internal email on Twitter revealing that the automaker is cutting around nine percent of jobs across the company.

2016 Tesla Model S P90D front badge © Automobile Magazine Staff 2016 Tesla Model S P90D front badge

Tesla has dropped around nine percent of its workforce as part of a restructuring plan, CEO Elon Musk revealed on Twitter today. Production of the Model 3 will not be affected by the cuts.

"Tesla has grown and evolved rapidly over the past several years, which has resulted in some duplication of roles and some job functions that, while they made sense in the past, are difficult to justify today," Musk said in a company email which he later posted on Twitter. "As part of this effort, and the need to reduce costs and become profitable, we have made the difficult decision to let go of approximately 9% of our colleagues across the company."

Elon Musk takes charge of Tesla Model 3 production

  Elon Musk takes charge of Tesla Model 3 production Musk replaces five-year Tesla veteran Doug Field, who has been reassigned.This news comes as no surprise given Tesla's woes of late, with Model 3 production numbers being lower than anticipated, downgraded credit, slipping stock prices and a recent Autopilot-related fatal Model X crash.

Electric car maker Tesla has announced that it is cutting nine percent of its workforce , in what founder and CEO “As part of this effort, and the need to reduce costs and become profitable, we have made the difficult decision to let go of approximately nine percent of our colleagues across the company.”

Tesla has dropped around nine percent of its workforce as part of a restructuring plan, CEO Elon Musk revealed on Twitter today. Amid the news, Tesla ’s stock fell today. Although it had increased 6. 9 percent earlier in the day, shares were up just 2.6 percent after the announcement.

The email says almost all of the workers cut were salaried. No production associates were included, which means we won't see disruptions to operations surrounding the Model 3. The automaker is working to boost production of the entry-level sedan after missing targets for the first quarter of the year. By the end of the second quarter, Tesla hopes to be making 5,000 copies a week.

Tesla has never turned an annual profit since it was first established almost 15 years ago. Musk acknowledges this fact in an email, adding, "What drives us is our mission to accelerate the world's transition to sustainable, clean energy, but we will never achieve that mission unless we eventually demonstrate that we can be sustainably profitable. That is a valid and fair criticism of Tesla's history to date."

Tesla hit hard by new Chinese tariffs

  Tesla hit hard by new Chinese tariffs American-made cars will see import duties double in China.Previously, US-built vehicles brought into China were hit with a 25 percent import duty, but under the new regulations an additional 25 percent would be piled on. With a 50 percent tariff in place, the price tag for American-made vehicles would likely be pushed out of reach for a large part of the Chinese car-buying public.

Musk conceded that Tesla has not made an annual profit in 15 years. Shareholders reacted positively to the announcement, and Tesla rose more than 3 percent by the end of Tuesday, with a stock price of 2.62.

Tesla has laid off about nine percent of its employees, Electrek first reported. The majority of Tesla employees working at Home Depot will be offered the opportunity to move over to Tesla retail locations. I would like to thank everyone who is departing Tesla for their hard work over the years.

Tesla had 37,543 employees in its ranks by the end of last year, more than 12 times its workforce five years earlier, as the Los Angeles Times points out. Tesla also lost nearly $2 billion last year.

Amid the news, Tesla's stock fell today. Although it had increased 6.9 percent earlier in the day, shares were up just 2.6 percent after the announcement.

Source: Tesla, Los Angeles Times, CNBC

Tesla Hits Production Goals for Model 3 .
5,031 copies made in a week

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