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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.

The Wall Street Journal is reporting the automaker is set to reduce its workforce by roughly 10 percent , a decision that could Ford’s share price has suffered during Mr. Fields’s three-year tenure, and the company’s market value has slipped far behind those of Tesla Inc. and General Motors Co.

Musk published an internal email on Twitter revealing that the automaker is cutting around nine percent of jobs across the company. Difficult, but necessary Tesla reorg underway. My email to the company has already leaked to media.

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.

The company says the pay cuts are temporary. AMD has been struggling for quite a while now, recently selling off nearly 20 percent of the company to the Persian Gulf’s Abu Dhabi, and seemingly in a never ending game of catch-up with rival Intel.

Despite another quarter of slowing revenue growth, investors were cautiously optimistic on Twitter Inc. after it announced it would slash nine percent of its workforce .

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.

Tesla has laid off about nine percent of its employees, Electrek first reported. But Tesla has reportedly not renewed its contract, which means the Tesla employees working at Home Depot won’t be needed anymore.

Stephen Frank's California Political News And Views / Tesla slashes China workforce by a third–trouble at It has nine stores and service centers in six Chinese cities and nearly 700 power points in 70 Electric vehicles also qualify for an exemption from a 10- percent purchase tax and free license

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 Denies Report Claiming That 23 Percent of Model 3 Deposits Were Refunded .
Reservation retractions are blamed on a variety of factors affecting Tesla and its customers.The claim comes from Second Measure, a business data analytics company. According to data gathered with its own software from billions of transactions, and a track record of accuracy to Tesla's own self-released figures, the company was confident claiming refunds account for 23 percent of all Model 3 reservation outcomes, versus 8 percent receiving their vehicles.

Source: http://ca.pressfrom.com/autos/news/-78983-tesla-slashes-nine-percent-of-workforce/

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