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Electric Car Maker Tesla to Lay off 7% Staff Amid China Dreams

Musk-led private spaceflight company SpaceX also announced recently that it would lay off 10 per cent of its workforce to fund other projects

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

Electric car maker Tesla on Friday announced it is laying off seven per cent of its full-time staffers in an attempt to reduce costs and increase profits.

The news comes on the heels of Tesla CEO Elon Musk laying the foundation of a Tesla Gigafactory in Shanghai earlier this month — the first outside the US.

All Tesla employees were informed about the development in an email.

“Starting around May, we will need to deliver at least the mid-range Model 3 variant in all markets, as we need to reach more customers who can afford our vehicles. Moreover, we need to continue making progress towards lower priced variants of Model 3.

“Attempting to build affordable clean energy products at scale necessarily requires extreme effort and relentless creativity, 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,” Musk wrote in a blog post.

Tesla CEO Elon musk, board
Tesla CEO Elon Musk. (VOA)

Musk said that the company unfortunately has no choice “but to reduce full-time employee headcount by approximately 7 per cent (we grew by 30 per cent last year, which is more than we can support) and retain only the most critical temps and contractors”.

The China factory that is expected to produce 500,000 electric vehicles per year and double the production capacity of Tesla, will begin with the production of Model 3.

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Musk-led private spaceflight company SpaceX also announced recently that it would lay off 10 per cent of its workforce to fund other projects.

SpaceX, which has a contract with NASA to deliver cargo to the International Space Station (ISS), is now planning to start flying astronauts to the ISS for NASA sometime this year.
(IANS)

Next Story

Elon Musk Becomes Longest Serving CEO in Global Automotive Segment

Musk has repeatedly pushed workers to hit quarterly goals while managing all the extra production and delivery work piling up toward the end of a quarter

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Tesla CEO Elon musk, board
Tesla CEO Elon Musk. (VOA)

For many of us, Tesla is a new entrant in the global auto industry but Elon Musk has actually become the longest serving CEO in today’s automotive segment.

The feat was achieved when then-Daimler CEO Dieter Zetsche, serving as the German automaker’s CEO since 2006, retired in May this year, Teslarati reported on Wednesday.

Musk took over as the electric car maker’s CEO in 2008.

Renault-Nissan-Mitsubishi saw veteran CEO Carlos Ghosn quitting over his alleged connection with a high-profile financial scandal.

Last month, Mitsubishi also announced the departure of its CEO Osamu Masuko.

BMW CEO Harald Kruger has also announced his retirement.

Elon Musk, CEO of SpaceX and Tesla. Wikimedia Commons

Many automakers have new CEOs and only Akio Toyoda of Toyota who joined in 2009 is close behind Musk.

Under Musk, Tesla is breaking all records. The electric car-maker achieved a record production of 87,048 vehicles and record deliveries of approximately 95,200 vehicles in the second quarter of 2019.

In the quarter (April-June 2019), Tesla produced new 72,531 Model 3 sedans and delivered 77,550 of those.

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In addition, 14,517 new Model SX cars were made and 17,650 of those were delivered.

Customer vehicles in transit at the end of the quarter were over 7,400.

Musk has repeatedly pushed workers to hit quarterly goals while managing all the extra production and delivery work piling up toward the end of a quarter. (IANS)