Sun. May 26th, 2024

Elon Musk Just Axed 10% of Tesla Crew, Gears up for the “Next Big Move”

Tyler Mitchell By Tyler Mitchell May14,2024 #finance

In preparation for more growth, Musk issues a memo announcing an workforce cut of 10 percent and two top Tesla (TSLA) executives resign. Let’s cut through all the lies.

Next Phase of Growth Memo

Over the years, we have grown rapidly with multiple factories scaling around the globe. With this rapid growth there has been duplication of roles and job functions in certain areas. As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity. 

As part of this effort, we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally. There is nothing I hate more, but it must be done. This will enable us to be lean, innovative and hungry for the next growth phase cycle.

I would like to thank everyone who is departing Tesla for their hard work over the years. I’m deeply grateful for your many contributions to our mission and we wish you well in your future opportunities. It is very difficult to say goodbye.

For those remaining, I would like to thank you in advance for the difficult job that remains ahead. We are developing some of the most revolutionary technologies in auto, energy and artificial intelligence. As we prepare the company for the next phase of growth, your resolve will make a huge difference in getting us there.

Thanks,
Elon

The above memo posted by Electrek.

Preparing for Growth

Preparing for growth by firing working is like trying to lose weight by stocking the pantry with more potato chips.

While we don’t have an exact percentage, “more than 10%” means at least 14,000 employees will be laid off, as Tesla’s employee headcount is somewhere on the order of 140,000 total employees (Notably, Tesla’s headcount has not experienced as much “rapid growth” in recent years as it has in the past, making that line of the email ring somewhat hollow).

Top Executives Jump Ship

Quartz reported Andrew Baglino, Tesla’s senior vice president for energy engineering and powertrain, resigned on Sunday.

Rohan Patel, Tesla’s vice president of public policy and business development, announced he would leave the company in a Tweet on Monday.

Tesla Recalls Nearly All Vehicles on US Roads

In December, Reuters reported Tesla Recalls Nearly All Vehicles on US Roads Over Lack of Autopilot Safeguards.

Tesla, is recalling over 2 million vehicles in the U.S. to install new safeguards in its Autopilot advanced driver-assistance system, after a federal safety regulator cited safety concerns.

The largest-ever Tesla recall appears to cover nearly all vehicles on U.S. roads to better ensure drivers pay attention when using the system. Tesla’s recall filing said that Autopilot’s software system controls “may not be sufficient to prevent driver misuse” and could increase the risk of a crash.

Hardware and Musk’s Mouth

The recall is a software issue. However, hardware and Elon Musk’s mouth are much bigger issues.

Musk keeps hyping fully autonomous driving when Tesla is not even close. Then Musk blames “driver error” when drivers attempt to drive as Musk claims.

Tiresome Lies

Musk statements are no longer best viewed as excessive hype, but rather tiresome lies.

For four years running, Musk promised to make 50,000 electric semis. Tesla delivered a grand total of 100.

4 Million Semis on the Road, Only 35 Class 8 Truck EV Charging Stations

Let’s discuss some of the obvious flaws in Biden’s latest mandates that will require EVs to account for 60% of new urban delivery trucks and 25% of long-haul tractor sales by 2032.

Image from the US Department of Energy, annotations in blue by Mish.

On April 1, I noted 4 Million Semis on the Road, Only 35 Class 8 Truck EV Charging Stations

On January 19, 2024, Electrek reported Tesla Finally Moves Forward with Gigafactory Nevada Expansion for Tesla Semi and 4680 Cells.

However, it doesn’t look like Tesla is working on the previously announced expansion with new sections of the existing building.

The new work is being done outside of the originally planned area. It’s possible that Tesla is working on the land for a new parking lot as it will need to move the existing one if it goes through with these plans.

If Musk was serious about growth, he would be expanding the Nevada Gigafactory that is supposed to build the truck.

Musk would also be expanding the number of interstate truck chargers. Musk is doing neither.

Tesla’s Deliveries Drop for First Time Since 2020, It’s Demand Not Supply

Tesla’s (TSLA) quarterly deliveries in the first quarter of 2024, are down 8.5% from a year earlier. It’s the first quarterly decline since 2020.

On April 2, I noted Tesla’s Deliveries Drop for First Time Since 2020, It’s Demand Not Supply

Curiously, Musk blamed “production setbacks”.

Yeah right. Companies always respond to “production setbacks” by firing over 10 percent of their workforce.

Ford to “Re-Time” New EV Production, Expand Hybrid Production

On April 4, I noted Ford to “Re-Time” New EV Production, Expand Hybrid Production

Ford announces a two-year delay, “retiming” until 2027, on new EV models scheduled for 2025. In addition. Ford will focus on a full line of hybrids.

Volkswagen EV Sales Plunge 24 Percent in the First Quarter

On April 11, I reported Volkswagen EV Sales Plunge 24 Percent in the First Quarter

Electric vehicle (EV) sales fell by 24pc in the first three months of the year as high inflation and rising energy prices dampened demand. The drop-off in EV demand comes as politicians in the region rollback subsidies and reconsider ambitious targets to dump petrol and diesel cars.

Reuters Reports Tesla to Scrap $25,000 Entry EV

On April 5, I noted Reuters Reports Tesla to Scrap $25,000 Entry EV, Musk Cries Liar

The big problem for Musk is Tesla’s self-driving capability is nonexistent.

Robotaxi Hype

Musk made the above Tweet on April 5 in response to a Reuters article that claimed Tesla would abandon an entry-level EV priced at $25,000 or less and instead focus on a robotaxi.

Musk denied the rumor, then essentially confirmed it with the above Tweet.

“Full Self Driving” Beta

Musk claims to have a “Full Self Driving Beta”.

It may be a “beta” but it sure isn’t anywhere close to self-driving.

Full Self-Driving FSD

Elon Musk Vaporware

On August 8, Elon Musk will make an announcement on robotaxis.

Musk is a Serial Liar

Musk may be a genius (I think he is and I cite Tesla, SpaceX, and PayPal as proof), but he is also a serial liar, and a careless one at that.

It is amazing that on the same day as accusing Reuters of lying, that Musk announced not the Robotaxi but rather a date (August 8) that he would announce the Robotaxi.

Ever since 2016, Musk has been promising “Full Self-Driving FSD” within a year.

Electric semi production is nowhere in sight. Now, Musk is firing over 10 percent of the workforce to prepare for growth.

Tesla is Dead Last

On April 8, I commented Tesla’s Robotaxi August Launch Will Be More Elon Musk Vaporware

FSD seriously lags Waymo. For details and discussion, please click on the above link.

Give Musk credit for being a genius if you like. I think the label fits. But if you believe anything he says after all this hype you are a member of the Musk cult.

Tyler Mitchell

By Tyler Mitchell

Tyler is a renowned journalist with years of experience covering a wide range of topics including politics, entertainment, and technology. His insightful analysis and compelling storytelling have made him a trusted source for breaking news and expert commentary.

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One thought on “Elon Musk Just Axed 10% of Tesla Crew, Gears up for the “Next Big Move””
  1. As much as it is regretful to see a reduction in workforce, it is clear that Elon Musk is strategically setting the stage for Tesla’s future growth. Making tough decisions now will ensure the company remains agile and pioneering in the industries it operates in. Kudos to Elon for his leadership during these challenging times.

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