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Bumpy Road Ahead For Tesla

Attempting to build affordable clean energy products at scale necessarily requires extreme effort and relentless creativity

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Visitors inspect Tesla electric cars at Brussels Motor Show, Belgium, Jan. 18, 2019. VOA

Electric car and solar panel maker Tesla said Friday it plans to cut its staff by about 7 percent.

“The road ahead is very difficult,” the company’s founder and CEO Elon Musk said in an email to employees posted on the company’s website.

He said Tesla Inc. hopes to post a “tiny profit” in the current quarter but that after expanding its workforce by 30 percent last year, it cannot support that size of staff.

Musk said in a tweet in October that Tesla had 45,000 employees. A 7 percent cut would involve laying off about 3,150 people.

Tesla, board
Tesla to lay-off 7% full-time staff amid China dreams. Pixabay

Tesla’s shares tumbled earlier this month after it cut vehicle prices by $2,000 and announced fourth-quarter sales figures that fell short of Wall Street estimates.

“Our products are too expensive for most people,” Musk said in the memo to Tesla staff saying the company has to “work harder.”

“Tesla has only been producing cars for about a decade and we’re up against massive, entrenched competitors,” he said.

The company says it delivered over 245,000 electric cars and SUVs last year, nearly as many as all previous years combined. But its 2018 production fell far short of a goal set nearly three years ago of manufacturing 500,000 vehicles for the year. That goal was announced in May of 2016 based on advance orders for its mid-range Model 3, which sells for $44,000.

Also Read: Elon Musk Quotes $1 bn to Build Tunnel Under Australian Mountain Range

Musk said Tesla plans to ramp up production of the Model 3, “as we need to reach more customers who can afford our vehicles.”

“Attempting to build affordable clean energy products at scale necessarily requires extreme effort and relentless creativity,” he said in the memo, “but succeeding in our mission is essential to ensure that the future is good, so we must do everything we can to advance the cause.” (VOA)

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Elon Musk Shares Pictures of SpaceX’s New Starship Prototypes

Musk is expected to announce the company’s latest update to the Starship on September 28

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Elon Musk, CEO of SpaceX and Tesla. Wikimedia Commons

Tesla and SpaceX CEO Elon Musk has posted two new pictures on Twitter showing the latest construction updates for the Starship rocket prototype that is being built at SpaceXs Boca Chica, Texas facility.

One of the images shows the vehicle, Starship Mk1, which is being assembled at SpaceX’s South Texas facility near the village of Boca Chica, in the background, standing behind a building that contains a variety of parts and other equipment, news portal space.com reported on Wednesday.

Musk captioned the picture: “Droid Junkyard, Tatooine.”

FILE – SpaceX founder Elon Musk tells the 67th International Astronautical Congress in Guadalajara, Mexico, that he envisions 1,000 passenger ships flying en masse to Mars and says it could become reality within a century, Sept. 27, 2016. VOA

The second photo he posted is of a large metal disc being lowered onto Mk1’s body. This he captioned as “Area 51 of Area 51”.

Also Read: By 2030, African Children to Make ‘Half of the World’s Poor’

SpaceX hopes for Starship to be used as a commercial spacecraft that will be able to take off and land like an airplane. It is expected to be ready by 2021.

Musk is expected to announce the company’s latest update to the Starship on September 28. (IANS)