Tesla lays off thousands of employees

Tesla lays off thousands of employees

Electric auto maker Tesla Inc.is laying off about 3,600 white-collar workers as it slashes costs in an effort to become profitable. "These cuts were nearly entirely made from our salaried population and no production associated were included, so this will not affect our ability to reach Model 3 production targets in the coming months".

Tesla has grown rapidly, increasing headcount by more than 15% since the start of the year, according to a company spokesman, so the cuts will leave the headcount higher than it was at the beginning of the year.

Tesla has struggled in recent months to resolve nagging production issues surrounding the Model 3 roll-out.

Musk says the company is motivated by turning a profit.

Layoffs reportedly began on Monday and are expected to continue throughout the week.

What do you think the future holds for Tesla? "The layoffs may help them to achieve profitability in the near-term but not sustain it".

Tesla has just announced a massive workforce reduction of about 3,600 employees amounting to about 9% of its total workforce. A spokesman said it would reduce overall employment back to around 37,000 - roughly in line with numbers at the end of past year.

On Twitter, Trump declares that the North Korea nuclear threat is over
The Trump administration is set to cancel the next joint military exercise on the Korean Peninsula scheduled for August, a report said on Wednesday.

However, the cuts come from the management side of the business - not the production side - so this shouldn't affect the production of the Model 3, or other imminent new models directly. Musk also recently had a tense exchange with financial analysts after the firm reported record losses.

Tesla's been in "production Hell" for the past nine months as it attempts to ramp up the Model 3.

The stock lost did lose some gains following news of the layoffs.

Tesla rose more than 5% in trading Tuesday, continuing a winning streak that has short sellers feeling the pain. Out of 24 analysts polled in the last 3 months, the battle between the bulls, the bears, and the sidelined appears evenly split- with 7 bulls betting on TSLA stock, 10 analysts hedging their bet, and 7 bears running for the hills.

Tesla CEO Elon Musk told employees this week the company plans to make significant job cuts as part of a comprehensive restructuring effort. Those obligations, combined with operating costs, may necessitate a more than $2-billion injection this year, Moody's Investors Service said in March when it downgraded Tesla's credit rating.

There has only been a small drop in the number of shares sold short in June. The 12-month average price target stands at $302.67, marking almost 5% in downside potential from where the stock is now trading.

Related Articles

  • China wants UN Security Council to lift sanctions on North Korea

    China wants UN Security Council to lift sanctions on North Korea

    In a split-screen shot, Kim Jong Un waved to an adoring crowd while President Trump stood beside him with his thumb in the air. And he did not mention formally ending the Korean War, which many observers had predicted could be one outcome of the meeting.
    Paul raccoon reaches roof after death-defying climb up downtown tower

    Paul raccoon reaches roof after death-defying climb up downtown tower

    The story was picked up by Minnesota Public Radio and the raccoon's saga - with the hashtag "mprraccoon" went viral. Photos on social media showed the little dude, dubbed #MPRRacoon by Minnesota Public Radio , scaling past St.
    SNP's Ian Blackford clashes with Speaker before walkout

    SNP's Ian Blackford clashes with Speaker before walkout

    The SNP says it will now seek to build a new power-sharing deal for Scotland, Brexit minister Michael Russell told Reuters. The Scottish Secretary will deliver a Commons statement today giving MPs the chance to debate Brexit and devolution.
  • Rebel Wilson's defamation payout reduced on appeal

    Rebel Wilson's defamation payout reduced on appeal

    She wrote that she had "already won the case" and that the case was more about clearing her name than making money. Apparently some weight loss companies are using her image to sell their shit, and Wilson's not into it.
    Juventus chasing Old Trafford wantaway Anthony Martial

    Juventus chasing Old Trafford wantaway Anthony Martial

    Today, Anthony is disappointed because he demonstrated for three seasons his love for the club and its supporters. It is a well-considered decision.
    Miami could be hosting some World Cup 2026 soccer games

    Miami could be hosting some World Cup 2026 soccer games

    The United States is likely to have 10 cities selected to host games, while Mexico and Canada are expected to each have three. The regional bid proved more appealing this time and the North Americans even collected 11 votes from Africa.
  • Id-El-Fitr: FG declares Friday, Monday public holidays

    Id-El-Fitr: FG declares Friday, Monday public holidays

    Free parking in Dubai will be activated on 29 Ramadan (Thursday June 14) and applies until 3 Shawaal 1439H (Sunday June 17). Sultan Bin Saeed Al Badi Al Dhaheri, Minister of Justice issued the resolution for the moon-sighting committee.
    Saudia Arabia attack on Yemen: Hodeidah assaulted by warships and warplanes

    Saudia Arabia attack on Yemen: Hodeidah assaulted by warships and warplanes

    Forces loyal to Yemen's exiled government and irregular fighters led by Emirati troops had neared Hudaida in recent days. Defense Secretary Jim Mattis on Monday acknowledged the USA continues to provide support to the Saudi-led coalition.
    Super Eagles win ‘Best Fashion Team’ Award

    Super Eagles win ‘Best Fashion Team’ Award

    Nigeria is locked in Group D alongside Argentina, Croatia, and Iceland. John Obi Mikel was representing Nigeria's colours well ohh.
  • Pogba 'likely' to start WC opener - Deschamps

    Pogba 'likely' to start WC opener - Deschamps

    He scores a lot of goals , and regardless of whether they are lovely or not, they are still goals. You can't trust him as a central midfielder and, ultimately, that's how Deschamps will see it.
    The Golden State Warriors: A dynasty in the making

    The Golden State Warriors: A dynasty in the making

    Among the top destinations mentioned in the LeBron sweepstakes: the Philadelphia 76ers, Los Angeles Lakers and Houston Rockets . The Boston Celtics have won the most league titles, at 17. "I've got a big smile on my face right now", Curry said.
    Activision Update Their FAQ Regarding The BLOPS IIII Season Pass

    Activision Update Their FAQ Regarding The BLOPS IIII Season Pass

    It appears that you need to purchase the Black Ops Pass content in one shot, as it won't be available for individual purchase. This might be confusing for those that buy the standard edition of the game and want to get the season pass down the line.