Mexican Media Brands
Tesla to Cut 3,200 Jobs
Tesla Inc., which expanded its workforce 30% in 2018, now says it must cut its staff by 7% (about 3,200 people) to lower product costs and help achieve sustainable profitability.
#workforcedevelopment
Share
Tesla Inc., which expanded its workforce 30% in 2018, now says it must cut its staff by 7% (about 3,200 people) to lower product costs and help achieve sustainable profitability.
Tesla posted a 4% profit in the third quarter last year and is likely to report a “tiny” profit for the final period, says CEO Elon Musk. But he tells employees via email that layoffs are unavoidable as the company struggles to deliver on a long-promised $35,000 version of its Model 3 electric sedan.
The cheapest version of the Model 3 in any market currently costs $44,000. “We need to reach more customers who can afford our vehicles,” Musk says.
Musk points out that the pressure to cut costs will rise dramatically this year. That’s because the $7,500 U.S. tax credit available to new Tesla’s customers is shrinking and will disappear entirely by year-end.
He says that offsetting the resulting rise in purchase price will require manufacturing improvements that enable the company to reduce costs, hike throughput and gain production economies of scale.
RELATED CONTENT
-
Shifting Landscape of Technology Is a Never-Ending Education
Brent Donaldson, Senior Editor, Modern Machine Shop and Additive Manufacturing Magazine discusses how the shifting landscape of technology that all of Gardner’s writers and editors cover is a never-ending education. If we are truly doing our jobs, we will never feel like we’ve mastered them. As I continue writing and reporting for AM and MMS, it’s easy to imagine how these technologies’ interdependency will continue to grow. It also seems clear that this kind of reporting — the kind that requires editors to experience and share new manufacturing technologies and strategies — is the kind of reporting that only Gardner can produce with any depth. I’m grateful to be part of it.
-
8 Rules for Getting Things Done Through People
Effective management is a timeless skill—as demonstrated by this treasure of an article from the AutoBeat Group archive. Although the tools of the trade have changed and proliferated, the basics remain the same. Here are 8 old school (and just darn practical) rules for being an excellent manager.
-
Just In: Ed Welburn to Retire; Mike Simcoe Gets New Job
There are a lot of good people in the auto industry.