Tesla cuts 7% of its workforce, and Elon Musk sees a 'very difficult' road ahead
https://apple.news/AJzC1pj8gSk-lIVDLhBrqzA
https://apple.news/AJzC1pj8gSk-lIVDLhBrqzA
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Uh Tesla isn’t doing so hot all of a sudden
- Thread starter BAD
- Start date
Oh that's news to me. They were getting great headlines about the Model 3 sales figures for a while.
They're losing the subsidizes soon. So that won't help them with sticker shock. But they are still the leaders in electric vehicles. They will be fine.
They are doing this to keep costs low.
They also made a profit last quarter.
Guys, don't go nuts with the hot takes before you understand what you are taking about.
They are doing this to keep costs low.
They also made a profit last quarter.
Guys, don't go nuts with the hot takes before you understand what you are taking about.
it's literally the #1 American car manufacturer, isn't it?
it's probably overvalued but I think those are the numbers
Yeah this isn't some doom and gloom. Federal subsidies going away increased the price of the car which forced down demand. They are trying to lower the price while in parallel lower costs to maintain similar margins that can lead to positive net income. Timing of Q4 and likely results of Q1 will be impacted hy this as they restructure and rebalance the P&L.
The man has been dead for 75 years, how much worse can you get
7% of the work force, damn. This is going to suck for loads of people, which makes this pretty bad news, no matter how you view the company, imo.
I think the general public has very little understanding of where electric vehicle tech, affordability, and innovation actually is. Tesla is almost solely responsible for pushing the conversation to the forefront of the public consciousness but when you pull the curtain back of what they are actually producing, its not very pretty. For all the pomp and circumstance and cult following this brand seems to have, Hyundai is releasing a full EV small SUV that beats the model 3 on both price and range. Nobody has ever heard of it and its out in 3 months.
Perhaps by market cap, but by sales it's not even close to the big boys.
GM had 2.95 million sales in 2018 in the US. Ford had 2.48 million sales in 2018 in the US.
Tesla had about 126,000 sales in the US.
https://www.marklines.com/en/statistics/flash_sales/salesfig_usa_2018
Based on the fact that the company has been bleeding money and people forever.
I get your concerns, but are you aware of their numbers?
They framing of the article is based on numerical facts and cost cutting measures, but people are spouting out uneducated takes on their health as a company for a simple cost cutting measure.
I get that Musk is an asshole, but don't let that cloud your objectivity about the company as a whole.
Discussion about Tesla's future based on other topics is fine. But the OP (the article, not the person) is talking about real numbers here, which have factual basis and can be factually refuted.
They're doing fine, but those cars are not cheap to produce and they have a pretty thin margin on it currently. They can't effectively sell the cheaper Model 3 variants without losing money, but over time costs should come down and they will eventually be profitable.
China's buying power is shrinking and moving domestic. No one is gonna come out of the next few years without a bruise or two.
For the record: Musk has said he's much more of an Edison fan than a Tesla fan.
I agree generally with you (on most things you contribute to!). There are many hot business takes from people, myself included, that don't fully understand a particular businesses strategy and goals. The numbers that Tesla generates is a symptom of their recognition as the leader and innovator in their market, and not solely on the quality of their output, in my humble opinion.
If we see a future where the quality and reliability of an iPhone goes down, objectively, but Apple still pushes crazy numbers, it doesn't say much about the tech and product itself, or what the public understands about it.
really? cause most of what i see on this forum is people continuing to predict their demise and how bad they're doing etc etc.
I think your commentary regarding Tesla is fine, especially as more macro discussion regarding Tesla. There are many concerns with Tesla.
My issue is seeing an article like this and now questioning their health as company overall--not from you, you were looking at the macro.
But cost cutting is standard stuff. The are cutting cost to keep their prices low. Tesla is actually beat investor expectations last year.
This forum has a desire for all things Elon Musk to crash and burn that borders a cult. Tesla is fine, just like SpaceX (which is laying off a lot more people).
Companies shrink and increase all the time, Microsoft recently laid off thousands of employees as well, and yet, is one of the most valuable companies in the world. It's business.
Companies shrink and increase all the time, Microsoft recently laid off thousands of employees as well, and yet, is one of the most valuable companies in the world. It's business.
You do realize that Hyundai might not be making a profitable car though, right?
They missed the market prediction and the stock value dropped when that thread came around. Some people will tell you the market prediction doesn't matter. I imagine the market opinion/value do matter to the shareholders...just a guess.
This is just the normal result of increasing competition. VAG and M-B are introducing compelling competition in the EV space.
JLR just launched the iPace to strong reviews and it competes with both the Model X and Model S.
The Model 3 is great, VAG's MEB platform and its synergy with their Electrify America initiative are coming soon.
Economies of scale in production are no joke.
JLR just launched the iPace to strong reviews and it competes with both the Model X and Model S.
The Model 3 is great, VAG's MEB platform and its synergy with their Electrify America initiative are coming soon.
Economies of scale in production are no joke.
We just making shit up as we go along now.
Not everyone is going to be a fan, for any number of reasons. Not everyone is out to get you either. Sit down and relax.
i've had a model 3 for ~3 weeks.
I've taken my mom, who drives a bmw, for a ride and let her drive it. She's now considering buying one because her lease is up.
My best friend from austin, wants one, after driving it.
I met my former boss for lunch this week, whom in 2014 was considering shorting Tesla stock at the time, and took him for a ride. his exact words "holy crap, this thing is slick" "i love the minimalist design" "wow" "that screen is amazing" "the seats are super comfortable"
RE getting rid of the lowest level S and X. they got rid of their cheapest X and S, i'll bet anyone that they reintroduce them with larger battery packs. They're constantly introducing new sizing. they had a 65kw S, they don't anymore, they had a 85kw S and X they don't anymore. It was 75, 90 and 100. I would bet that the new ones will be 90, 100, and 110/120.
well I did say it was probably overvalued but the market cap is higher than the others. for whatever that's worth. or, LOL
It's fine not to know anything about Tesla. Just don't act like you do when that is not the case lol.
I don't see any post in this thread that indicate this. Also Elon Musk is POS period. If you are disagree, then you are the problem not the forum.
Man, no wonder. He seems like such a shitty person, of course he prefers the big bastard.
Correct.
The title itself is already a clue. I can't find a thread about "Microsoft not doing so good" when they laid off thousands last year. Also, Elon Musk might be a POS but he's the main responsible for the increase in EV interest and in the general population with space exploration as well. And yes, I know he's not there all by himself designing, building and selling cars and rockets all alone, but these are his companies and his contribution to end the more than decade stall on space transportation innovation and creating EVs that don't look like shit is commendable and undeniable.
Investors actually expected a loss on q4. They were surprised at that q4 profit.
edit: Actually they expected a loss on q3 and got a modest profit.
The thread that came out after the 3rd quarter numbers had one of the regular shills (one of the 5-7 posters who have 100+ ERA posts with at least 95% of them pro Musk/Tesla). In one they referred to all non-Tesla car companies as dinosaurs.
They're not apples to apples comparison though. Tesla is a company that needs growth and strong quarters, so reduction in headcount and a signal of dip in profits doesn't look great. By comparison Microsoft and GM are 'blue chip' companies so their moves on headcounts aren't seen as dire. GM's were about them acknowledging market change and adjusting.
But Tesla *is* growing. Workforce cuts are not necessarily a sign of bad performance. Time will tell.