Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Tesla Just Dealt a Devastating Blow Elon Musk Trims 7% of Workforce to Cut Costs
Cnn ^ | Jan 18, 2019

Posted on 01/19/2019 8:28:47 PM PST by NorseViking

Tesla delivered a catastrophic blow to its U.S. workforce this Friday. In a memo reviewed by the Wall Street Journal, CEO Elon Musk said the company will be slashing its staff by 7%.

Despite announcing its first gigafactory outside of the United States in Shanghai barely over a week ago, the electronic car maker will be handing over 3,000 of its 45,000-strong workforce their leaving papers.

(Excerpt) Read more at yahoo.com ...


TOPICS: Business/Economy
KEYWORDS: automotive; globalism; norsetroll; tesla; toycars; yesterday
Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-8081-90 next last
To: Moonman62
“Higher volume and manufacturing design improvements are crucial for Tesla to achieve the economies of scale required to manufacture the standard range (220 mile), standard interior Model 3 at $35k and still be a viable company. There isn’t any other way.”

Hyundai will have the EV Kona on the street in a couple months. 258 mile range for 37k before tax credits and discounting when Hyundai gets the volume up. The Car mags that have reviewed it, love it. Good looking small SUV unlike that butt ugly front end of the Model 3 Tesla Sedan. Competition will hurt Tesla, better looking equal priced high end stuff from Europe, low end more affordable cars from Nissan, Hyundai and others. Once the Status symbol wears off Tesla and the vanity driven millennials are onto the next new shiney thing Tesla will be in trouble. They are placing their bets with the China market and the new Factory they are building there. No doubt Elon will want to export from China and wind down California production to get profitable.

61 posted on 01/20/2019 4:32:47 AM PST by DAC21
[ Post Reply | Private Reply | To 11 | View Replies]

To: DAC21

Hyundai will have the EV Kona on the street in a couple months. 258 mile range for 37k before tax credits and discounting when Hyundai gets the volume up. The Car mags that have reviewed it, love it. Good looking small SUV unlike that butt ugly front end of the Model 3 Tesla Sedan.

...

Nice, but the Kona is a subcompact. The Model 3 is midsize.

And what does it say about the EV market, that more competition will be showing up?


62 posted on 01/20/2019 4:43:39 AM PST by Moonman62 (Give a man a fish and he'll be a Democrat. Teach a man to fish and he'll be a responsible citizen.)
[ Post Reply | Private Reply | To 61 | View Replies]

To: Haiku Guy

“the Chinese will start stealing his technology from Day 1. Within ten years, the Chinese will be selling the same technology at half the cost”

They may well have already stolen some of it. Chinese EV Car Co. NIO is no sleeper in design, just a matter of stealing someone’s superior battery technology.


63 posted on 01/20/2019 4:44:12 AM PST by DAC21
[ Post Reply | Private Reply | To 56 | View Replies]

To: Osage Orange
"I'd rather drive a VW... And I have a 1961.

74 Super Beetle here, daily driver.

64 posted on 01/20/2019 4:46:20 AM PST by misanthrope (Deranged, sinister deplorable)
[ Post Reply | Private Reply | To 48 | View Replies]

To: dangus

The bad news is simply that Musk shows he has no loyalty to his workforce.

...

Almost all companies don’t, and those other companies are Musk’s competition.

And like it or not, many companies that have done layoffs have gone on to do very well.


65 posted on 01/20/2019 4:52:15 AM PST by Moonman62 (Give a man a fish and he'll be a Democrat. Teach a man to fish and he'll be a responsible citizen.)
[ Post Reply | Private Reply | To 55 | View Replies]

To: DAC21

They may well have already stolen some of it. Chinese EV Car Co. NIO is no sleeper in design, just a matter of stealing someone’s superior battery technology.

...

It will be a sad day at McDonald’s when the Chinese steal their hamburger technology.


66 posted on 01/20/2019 4:54:53 AM PST by Moonman62 (Give a man a fish and he'll be a Democrat. Teach a man to fish and he'll be a responsible citizen.)
[ Post Reply | Private Reply | To 63 | View Replies]

To: Moonman62

One management tool is to replace the bottom ten percent performers every year. It does wonders for productivity.


67 posted on 01/20/2019 4:54:57 AM PST by sparklite2 (Don't mind me. I'm just a contrarian.)
[ Post Reply | Private Reply | To 65 | View Replies]

To: Moonman62
“Nice, but the Kona is a subcompact. The Model 3 is midsize”

SUV vs Sedan is the correct comparison. Sedans sales are dying in the USA.(see Ford) A family of four or five will fit fine in the Kona. Tesla missed the mark, the 3 should have been a small SUV for the N. American market. Or at least a platform that could support both.

68 posted on 01/20/2019 4:58:31 AM PST by DAC21
[ Post Reply | Private Reply | To 62 | View Replies]

To: sparklite2

One management tool is to replace the bottom ten percent performers every year. It does wonders for productivity.

...

Jack Welch was a fan of that. He laid off a large amount of GE employees in the early 80’s and they went on to do very well. I don’t like layoffs, though, but they seem to be a necessary evil.

I always liked Demings philosophy, improve the processes and treat the workers well.


69 posted on 01/20/2019 4:59:15 AM PST by Moonman62 (Give a man a fish and he'll be a Democrat. Teach a man to fish and he'll be a responsible citizen.)
[ Post Reply | Private Reply | To 67 | View Replies]

To: DAC21
SUV vs Sedan is the correct comparison.

No it isn't. A family of four or five will fit fine in the Kona.

That's not what I just read in Car and Driver. They said the space is cramped.

Tesla missed the mark, the 3 should have been a small SUV for the N. American market. Or at least a platform that could support both.

The Model Y is on the way:

Based on CEO Elon Musk’s public comments, the Model Y may be just around the corner.

“We’re aiming to unveil the Model Y approximately March next year, and then go into production about two years from now,” he said at the company’s most recent annual shareholder meeting. “Maybe a little less than two years, but basically first half of 2020 for production of Model Y.”

70 posted on 01/20/2019 5:06:45 AM PST by Moonman62 (Give a man a fish and he'll be a Democrat. Teach a man to fish and he'll be a responsible citizen.)
[ Post Reply | Private Reply | To 68 | View Replies]

To: DAC21
Hyundai will have the EV Kona on the street in a couple months. 258 mile range for 37k before tax credits and discounting when Hyundai gets the volume up. The Car mags that have reviewed it, love it.

But will consumers love it? The Chevy Bolt has a similar range and it isn't flying off dealer lots. GM sold ~24K Bolts last year.

71 posted on 01/20/2019 5:11:40 AM PST by EVO X
[ Post Reply | Private Reply | To 61 | View Replies]

To: TigersEye

If the company staffed up for projected growth that is not coming, the reduction is not only justified but essential.


72 posted on 01/20/2019 5:13:11 AM PST by bert ( (KE. N.P. N.C. +12) Princess Gray Beaver, for President?)
[ Post Reply | Private Reply | To 12 | View Replies]

To: NorseViking

New Tesla 3 is now $45,000.

Compare to (say) a new 2019 Toyota Camry LE at $23,500.
Diff = $21,500 / $2.50 gal reg Unleaded = 8,600 gals of gas.

Say you get 25 miles/gal with the Camry.

8,600 * 25 = 215,000 miles.

Yeah, I think I’ll take the Camry ... plus I’m sure it will be worth more $$$ after 200,000 miles then a Tesla 3.

“Just saying ...”


73 posted on 01/20/2019 5:41:14 AM PST by CapnJack
[ Post Reply | Private Reply | To 1 | View Replies]

To: Wayne07
Is 7% really catastrophic?93% of Tesla workers say "No."

Let's put this in perspective. If Trump RIF'd a few hundred thousand "non-essential" government employees... say 7 to 10 percent, would it be catastrophic?

74 posted on 01/20/2019 5:51:05 AM PST by Pearls Before Swine ( "It's always a party when you're eating the seed corn.")
[ Post Reply | Private Reply | To 3 | View Replies]

To: EVO X

“But will consumers love it? The Chevy Bolt has a similar range and it isn’t flying off dealer lots. GM sold ~24K Bolts last year”

Time will tell. After tax credit (assuming the buyer qualifies for full amount) there is no other 30k EV SUV that I know of. Soccer Mom’s love the higher seating position of SUV’s. Mind you I really have no dog in the EV controversy. I bought a gas loving Turbo Elantra GT Sport last month.


75 posted on 01/20/2019 6:09:34 AM PST by DAC21
[ Post Reply | Private Reply | To 71 | View Replies]

To: Moonman62
"TSLA stock tends to make big swings in both directions."

It's no wonder. Tesla has floated above and below the entire market value of Ford. Ford makes more cars in a few days than Tesla can make in a year. Tesla has never made a profit. Ford makes billions a year. The market value of Tesla is pure speculation, the market value of Ford is based on profitability.

Tesla's biggest real value was the Obama era fuel economy requirement of 54 miles per gallon CORPORATE AVERAGE fuel economy starting in 2023. The only technically possible way to meet that would have been to average a lot of EVs in with conventionally fueled vehicles. Obama's regulations treated EVs as zero fuel consumed, allowing manufacturers to divide a fixed amount of fuel by a bigger total number of vehicles. That's all gone now.

In fact, EVs are almost totally powered by evil coal at electric power plants.

76 posted on 01/20/2019 6:14:00 AM PST by norwaypinesavage (Calm down and enjoy the ride, great things are happening for our country)
[ Post Reply | Private Reply | To 6 | View Replies]

To: altura

Has he anticipated battery replacement cost for a used tesla?


77 posted on 01/20/2019 6:28:12 AM PST by hal ogen (First Amendment or Reeducation Camp?)
[ Post Reply | Private Reply | To 32 | View Replies]

To: BobL

A form of liberal population control with inducing cancer and infertility. You have a great sense of humor though.


78 posted on 01/20/2019 7:27:34 AM PST by inchworm
[ Post Reply | Private Reply | To 59 | View Replies]

To: norwaypinesavage

It’s no wonder. Tesla has floated above and below the entire market value of Ford. Ford makes more cars in a few days than Tesla can make in a year. Tesla has never made a profit. Ford makes billions a year. The market value of Tesla is pure speculation, the market value of Ford is based on profitability.

...

I think of what a comparison between Amazon and Walmart would have looked like 20 years ago.


79 posted on 01/20/2019 7:47:49 AM PST by Moonman62 (Give a man a fish and he'll be a Democrat. Teach a man to fish and he'll be a responsible citizen.)
[ Post Reply | Private Reply | To 76 | View Replies]

To: vette6387
Me I'm waiting for that Hydrogen powered Morgan


80 posted on 01/20/2019 7:57:00 AM PST by spokeshave2 (https://www.gofundme.com/TheTrumpWall.... $20,722,141 of $1.0B goal by 348,109 people.)
[ Post Reply | Private Reply | To 51 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-8081-90 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson