Tesla has seen its profits more than halve this year, and says it will bring forward the launch of new models after announcing thousands of job cuts to try to reverse its fortunes.
Despite plans to bring forward new models originally planned for next year the firm is cutting its workforce.
Tesla said it would lose 3,332 jobs in California and 2,688 positions in Texas, starting mid-June.
The cuts in Texas represent 12% of Tesla’s total workforce of almost 23,000 in the area where its gigafactory and headquarters are located.
Didn’t Tesla already have issues with production anyways? Job cuts just seem like they’ll exacerbate the issue.
tesla was always a pump and dump. build it up quick, use it as financial vehicle, GTFO before it falls over.
they have never had an exit strategy or long-term plans for their products.
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i know edsel was thinking the same thing
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They were the first. Now many others have better cars. Tesla quality is awful.
Yes, and it’s common for job cuts to only make things worse for companies over the following quarters. It only makes things more backed up. It only helps your stock price for this quarter.
Whatever you might think about the Cybertruck, it is sold through for at least the next year. I think they’re terrible–they look even dumber in person than in photos–but there are people who are lining up to buy one. Cutting staff does not sell Cybertrucks any faster.
A $25k Tesla EV would be a huge win, both in the US and (most importantly for the company’s bottom line) China. There are reports of it being canceled, which may or may not be true, but it does appear that Elon wants to go all in on a self driving taxi, and I don’t see that working. Even if it eventually does, it’s a huge gamble when there’s a very straightforward moneymaker sitting right there that doesn’t require any particular R&D breakthroughs. Looks like Kia/Hyundai are happy to take that market if Tesla doesn’t want it. Meanwhile, BYD is sitting over there figuring out how to enter US and EU markets. Telsa is stuck with a stupid polygon truck.
Whatever you might think about the Cybertruck, it is sold through for at least the next year.
Yeah, but that’s not really saying anything considering that their production numbers have been awful. They claim that they should be able to reach 125k this year, but there have been reports of them only managing to produce around 80 a day, which is only around 30k a year.
And that was before the recent recalls and qc problems. Stainless steel is just an unforgiving material to work with, it’s gonna take them a while to reach mass production while maintaining any kind of quality control measures.
Production numbers are awful, but that’s only more reason why laying off workers is a bad move.
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Lower sales > Lower profits > cuts across the board (except c level) > lower quality > lower sales … aka the death spiral… hope they can halt the decline but their unique position as the only real electric car brand ended 5 years ago… with their prices they compete with Audi, Mercedes, BMW, and the other premium brands.
Edit: my point was indeed that their competition has better quality so the competition does not really work.
Other than on price, Tesla is just not on par with premium German brands.
And the Chinese EVs beat everyone on price…
But Americans aren’t allowed to buy them
If we had access to those, lots more Americans would be driving EVs.
In the company’s last earnings report in January, Chief Executive Elon Musk warned about the competitiveness of Chinese brands. BYD, China’s largest EV maker, surpassed Tesla in car sales last year.
"If there are not trade barriers established, they will pretty much demolish most other car companies in the world,” Musk said.
This year, Manhattan Beach-based Fisker Inc., an electrical vehicle startup, cut 15% of its workforce, had its stock delisted and said it might file for bankruptcy protection. Apple also recently announced an end to its long-held ambitions of making a self-driving EV.
https://www.latimes.com/world-nation/story/2024-04-19/china-ev-war-tariffs-tesla
We’re not allowed to buy them because other companies can’t compete, but even without being able to buy them, EV makers are going out of business.
The rich get protected while consumers and the environment gets fucked over
We could never sell those dirty ChiCom cars in the US! Can you imagine what would happen if those cars collected your driving habits and reported them back to
Ford GM Stellantis Tesla Honda VW Toyota Hyundai SubaruXi Jinping!?
with their prices they compete with Audi, Mercedes, BMW, and the other premium brands.
‘compete’ hahahahahaha
Price of a mercedes, panel gaps of a lada.
be respectful to Ladas, they can survive a carwash
yeah, at least a couple of times
Weren’t people estimating a *2027 end for Tesla bc they haven’t been working on new models? They put their efforts into the meme “truck” instead of the roadster. They have been slashing prices yet demand for EVs, especially theirs has been dropping. All the while, their main spokesman has been a toxic deterrent. Meanwhile, these douchelords think The ceo should get a $56B payout?
Weren’t people estimating a 2007 end for Tesla bc they haven’t been working on new models? They put their efforts into the meme “truck”
What? How is that supposed to make any kind of sense?
There were no efforts put into the “meme “truck”” in 2007, it wasn’t even speculated on being made yet. There were speculations back in 2007 that Tesla might not make it, because they had financial problems. But those speculations have zero relevance today.
Your post is nonsensical.I don’t know exactly what you’re asking, sorry. Could you clarify?
Did you mean 2017 or 2027? I don’t think Tesla existed back in 2007.
I’d guess 2027, since all the stuff mentioned are things that are culminating more recently.
That said, the company’s best long term asset is probably the charging network. Especially since other manufacturers are adopting their plug. But that’s boring, and Musk isn’t a guy who cares about the boring stuff. He’s exactly the type to ignore the company’s best strategic direction just because he can’t make grandiose claims on Xhitter about it.
The roadster was the only Tesla I liked, and it’s no coincidence that it was pre-Elon.
The original roadster is just a lotus Elise with a terrible DIY EV mod thrown in to it.
It’s based on a lotus design, so yeah it’s good some great parentage.
Who could see this coming when they decided to spend so much time and money developing an expensive steel box that rusts. Imagine if the CEO had any idea what they were doing and decided to focus on making actual cars
I couldn’t imagine being a software engineer for Telsa, pouring your heart and soul into making a good product.
And in your bosses’ drunken haze, gets to make an ass of himself on the world stage and get paid 1,000,000,000x your salary to do it.
Lose advertising investors, lose quality and face on the products you have to build. Still gets to be CEO of three failing companies
But your job is the one that gets canned to save the stock price.
Edit: loose
You’re a little loose with those extra Os there.
Or in job terms, 466,667 jobs that pay $120,000 a year.
They were talking about your use of loose in place of lose.
Thank you
I think the headline was supposed to say: “Nut job announced cuts.”
Nut job cut jobs
A company who’s unable to meet customer demands should not be this profitable. It should use it’s revenue to invest back into growing the business to meet customer demand. This should be the real headline.
Tesla is a slow motion train wreck. Their answer to the china low cost cars was a Robo Taxi. They are completely out of touch with the ev market now.
Yeah but come on. They spent years making a “Delorean, but now its a truck!” that rusts in the rain, has barely 180miles of actual range, has a non standard pickup truck bed, cant tow worth shit, cost between 60k and 100k dollars, has such shoddy workmanship that the accelerator pedal can fail and jam on, and they managed to sell a stunning 3800 of them in 6 months.
Whose got time for a blockbuster, feverishly in demand 20k electric sedan when you have “a kool dude” like the above to work on for 3 or 4 or 6 years.
Actually, they’re speedrunning the Boeing approach.
“Announce new technological marvels while simultaneously slashing their workforce” is just two steps before “product falls apart during usage”.
It’s sad to say, but I’m glad we’re at a point where shareholders now look at job cuts as a negative, and layoffs don’t result in an increase in share price.
Amazon have been cutting jobs for their third year running now, on top of URA, and the only thing keeping our CEO in a job right now is happy shareholders.
You must be looking at a different chart.
God fucking damnit, I hate Wall Street.
We sold fewer cars than expected, lost money, revealed that even though we’re making 1000 Cybertrucks a week we’ve only sold 4000 of them and had to recall every single one because we fucking glued the foot pad onto the accelerator pedal, and had our lying sack of shit CEO’s compensation nerfed by a judge so in response we’re gonna fire 6000 people.
Line go up.
Stock splits
“Holy shit guys, it’s cheap now, buy, buy, buy!”
HFT algorithmic robo-traders still gonna scalp daily delta, often in an incestuous and self-reinforcing cycle based on financial headlines
I’ve been bearish on Tesla for years, but it’s getting increasingly obvious with growing EV competition that their market cap is/was absurd hype that defies fundamentals or even possible value if Tesla was a monopoly
Zoom out about a week.
Its fair to say that last week, TSLA was oversold and is now bouncing back from that. But the -55% profits and -$2.3ish Billion FCF are bad numbers.
TSLA is down from $180, where it was just a few weeks ago. $140 prices this past week apparently was too low, but there’s no chance in hell that TSLA goes back up to pre-Q1 announcement numbers. Q1 2024 was awful. Declining sales around the world in all major areas: China, Europe, AND USA. They’re weak everywhere.
A 6 month chart is supposed to correlate with the effect of today’s layoffs announcement?
The layoffs were known last week though.
Sure, the news is finally talking about the layoffs, but people were locked out of their badges and complaining last week about this. So now its official today, but it was public knowledge last week when that price declined dramatically.
So the employees were nominally on the books until today. Big woop. They stopped working a week ago and complained about it online. You can’t hide a mass of 10,000+ sad and angry employees talking shit about Tesla. The stock moved on that before the official layoff announcement today.
I don’t think they do view it as negative, their stock is climbing aggressively on this news.
There’s a lot in East Austin near the Giga factory with hundreds of Cybertrucks that don’t seem to be moving…
Honestly though, the size of that building is obscene. It’s hard to look at it and not think vanity is playing a serious role in top-level decision-making at Tesla.
I wonder for how long they could pay those employee’s salary for with that $56Bn paycheck Musk is trying to give himself.
And if it’s tanking, Musk is responsible and shouldn’t be paid any bonus because he failed them.
“If somebody doesn’t believe Tesla is going to solve autonomy I think they should not be an investor,” he said.
🥹
Ah yes, the autonomous cars that are limited to only cameras and not any other form of sensor like radar/lidar will be so successful!
Our Very Stable 4D Chess TwitterBoy Genius has become so fantastically effective in killing his brands.
First Twitter.com, then TwitterCars and the TwitterTrucks.
Will he kill SpaceTwitter too?
And what about TwitterDigger? Is this still a thing?
I wonder why their after hours stock price skyrocketed.
Dead cat bounce?
When a stock drops by a lot there’s usually a low point at which some investors will start buying it again because it got so cheap. This drives the price higher but only temporarily. This is called the “dead cat bounce.”
There’s a pandemic term I haven’t seen in the wild for a hot minute.
“Dead cat bounce” has been a term in stocks for 30+years…
TIL thanks
I was going to to ask the same thing. Up over two dollars in premarket trading.
My only guess is that there were rumors of layoffs, and the stock market LOVES when the middle class gets fired.
- Fire workers to save money
- Loss of productivity losses money
- Fire workers to save money
- Loss of productivity losses money
- ???
…
?. Profit
