this post was submitted on 24 Apr 2024
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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.

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[–] [email protected] 71 points 6 months ago (15 children)

Didn’t Tesla already have issues with production anyways? Job cuts just seem like they’ll exacerbate the issue.

[–] [email protected] 19 points 6 months ago* (last edited 6 months ago) (3 children)

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.

[–] [email protected] 10 points 6 months ago (1 children)

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.

[–] [email protected] 4 points 6 months ago

Production numbers are awful, but that's only more reason why laying off workers is a bad move.

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