Bloomberg: TESLA, after doubling employees in 3 years, now seeks to cut by more than 10%

From the article:

Tesla Inc. will reduce global headcount by more than 10%, Electrek reported, as the carmaker grapples with a slowdown in electric vehicle demand. . . .

Tesla reported disastrous vehicle deliveries early this month, missing expectations by a wide margin and posting its first quarterly decline in four years. Several analysts are bracing for the EV maker’s sales to potentially shrink for the year, citing slow output of its newest model — the Cybertruck — and a lull in new products until the company starts producing a next-generation vehicle late next year. . . .

Tesla ended last year with 140,473 employees, almost double its total three years earlier. It’s been ramping up output at two plants — one in Austin, and the other outside Berlin — that started cranking out Model Y sport utility vehicles in early 2022. The company started slashing prices across its lineup as those facilities reached higher volumes. . . .

Tesla shares have slumped 31% this year, ranking among the worst performers in the S&P 500 Index. . . .

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Tesla has done one heck of a great job. They came out of nowhere and have led the world in the construction of electric vehicles that were better than those already on the market. Some of their charging systems will be the standard for all manufacturers as they too now enter this market. Electric vehicles have been forced by the political establishment around the world so that almost all automotive manufacturers are on board. The problem here in the US is, we the people have…almost…had enough. Ford is feeling it and this negativity towards electric is now spreading. The reduction of employees with Tesla is reflecting this attitude swing but Tesla has done a fine job.

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I think EVs would be more widely embraced now had the government not made so many impositions in the EV arena.


Too bad they hired morons to design their interiors. Whoever came up with the idea of getting rid of the gauge cluster should have taken out back and shot for war crimes.

You are far closer to the sales side of vehicles than I am (though I used to sell Toyotas in a previous life) but are people really not buying EVs because they think government is forcing them on the public?

I am thinking that the slowdown in sales is more to do with the pricepoint. Pretty much everyone who wants a Tesla and can afford it have one. But their is a market for those who want a Tesla but its out of their price range hence no sale.

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I agree that price is the biggest factor working against electric. The other is that the technology is advancing very quickly and it’s making earlier models…obsolete.

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For me it’s convenience. It’s not the better choice for my primary car. I’ve considered a cheap one to use as a tool. Just to work and back and charge at home. I’m in NJ, I don’t even get out of my car when I get gas. But I don’t know how much impact inconvenience has.

Plus New Jersey’s new registration fees on EVs is a disincentive as well.

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A lot of folks will not buy them because of limited range.

I wouldn’t consider them for that reason and the cost.

Expensive commuter cars. :roll_eyes:

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I think price is the biggest problem. Well that and they aren’t building the right EVs. EVs make a lot more sense as compact cars. And yet every automaker is trying to add a three row 8,000 pound SUV as an EV to their lineup. Which is dumb.

The big question is, can a car company make a more affordable EV and still have decent range?

It can be done. Because the less weight the basic car weighs the less energy needed to move it. So you can get similar range out of smaller batteries.

Everyone is super impressed by the Hummer’s range. But what they forget is that it does it by having a battery pack that weighs as much as a Toyota Corolla.

If you build a basic car that has similar weight to a Corolla, and then go from there on electrifying, you can get decent range from a mid-size battery that weighs less than a thousand pounds. Also the kind of customers who buy compact cars aren’t as big sticklers for range as people who drive huge SUVs and trucks anyway. 250 miles is acceptable in a compact car that is primarily used as a work commuter.

One of the environmental drawbacks of EVs comes from their weight. They wear out tires quicker. There are plenty of articles out there about the environmental damage that the micro-rubber particles wreak on waterways.

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I guess it depends on how compact. The mini cooper has like 115 range. I guess it’s ok if it’s not being used as a primary car. Some of the cheaper EVs have crappy charging speeds. I wouldn’t want my primary car to limit me to home charging.

That Mini uses a tiny battery. But they know their market. People don’t buy Mini Coopers, even gas models, as their only cars. They’re second fun cars. So the EV version had to be a light as possible to keep its tossable nature about it for it to appeal to anyone.

It’s even worse for these super heavy models everyone wants to sell.

Truth is from environmental standpoint most people drive too much car. That’s what sells so the companies are building EVs in that class size.

To me an EV the size of a Ford Explorer doesn’t make any sense. But I don’t even think the regular Ford Explorer makes sense for most people.

I guess it’s my European tastes coming out. I like small compact cars. It’s mostly what I’ve owned and driven around.

Only big cars I like are big luxury sedans. Those things are awesome.

It’s a bit of both, from my experience. It would be a different conversation if the price points were comparable, but I don’t personally believe the tech is anywhere near is reliable as it needs to be for mass adoption anyway. If you live in areas prone to severe weather, EVs are a non-starter, and I wouldn’t pay twice as much for a vehicle just to be a beta tester. The government mandates have definitely increased animosity towards EVs, because it comes off as an utterly tone deaf mandate from wealthy progressives - i.e. everything that comes out of Pete Buttigieg’s mouth.

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I thought I heard a stat that 95%+ of most Americans driving is within 20 miles of their home. Charge at home and have a full tank when you wake up. For 1/4th the price of gas.

You can get a used Tesla model 3 for less than 25k. New for less than 45k.

What isn’t reliable about EVs? Brakes last forever… no oil… no complex engines…

Governments have not mandated that you buy an EV. Plus the federal tax credits are now only eligible for middle to low income individuals.

That can’t be right. 95%? Only 20 miles? I don’t even think that’s true for retirees!!! Not 95%. I’m in my 50s, and the closest to work I’ve ever been is 23 miles one way. Even if you worked just 5 miles from your house, chances are you’re driving over 20 miles unless you do nothing but go to work and home all week.

I’m not saying there aren’t people that fall into that category, but I’d say it’s less than 50%. That statistic has to be in Europe somewhere.