Tesla cuts 9 percent of workforce in search for profit

Discussion in 'The War Room' started by JonesBones, Jun 12, 2018.

  1. JonesBones

    JonesBones Zuck Belt

    Joined:
    Sep 28, 2011
    Messages:
    22,632
    Likes Received:
    7,075
    Location:
    New York
    (Reuters) - Electric car maker Tesla Inc (TSLA.O) is cutting several thousand jobs across the company as it seeks to reduce costs and become profitable without endangering the critical production ramp-up for its Model 3 sedan.

    “As part of this effort, and the need to reduce costs and become profitable, we have made the difficult decision to let go of approximately 9 percent of our colleagues across the company,” the email read.

    Free cash flow, a key metric of financial health, widened to negative $1 billion in the first quarter from negative $277 million in the fourth quarter, excluding costs of systems for its solar business.

    https://www.reuters.com/article/us-...-workforce-in-search-for-profit-idUSKBN1J82EI
     
  2. sub_thug

    sub_thug Silver Belt

    Joined:
    Oct 31, 2008
    Messages:
    10,014
    Likes Received:
    9,869
    Not a good sign that they're laying 9% of its workforce, but all is not lost yet for Musk and Tesla. Didn't Ford just cut 10% of its workforce earlier this year as well?
     
    TheTimeIsNotNow likes this.
  3. Bamboozled

    Bamboozled Purple Belt

    Joined:
    Jan 14, 2018
    Messages:
    1,775
    Likes Received:
    2,374
    Location:
    Intrepid Traveler
    Tesla is perfect tho
     
  4. GSP_37

    GSP_37 Gold Belt

    Joined:
    Aug 27, 2007
    Messages:
    23,476
    Likes Received:
    7,337
    Location:
    Hawaii
    Is it short sale time?
     
  5. Liquid Smoke

    Liquid Smoke Great artists steal™

    Joined:
    Jul 11, 2013
    Messages:
    10,648
    Likes Received:
    9,848
    Unfortunate for those losing their jobs, but it's part of the big-boy business.
    I'm sure the technical folks will be snatched up real quick after working for an industry leader like Tesla.
     
    HockeyBjj likes this.
  6. Limit Smasher

    Limit Smasher Purple Belt

    Joined:
    Sep 9, 2012
    Messages:
    2,046
    Likes Received:
    4,079
    This is all Trumps fault!
     
    uppercutbus likes this.
  7. Madmick

    Madmick Scholar of Taghaza Staff Member Senior Moderator

    Joined:
    Jun 13, 2005
    Messages:
    37,132
    Likes Received:
    25,757
    Location:
    NorCal
    You're being sarcastic, but Elon is actually the type of businessman who politicians like the President affect most acutely.

    Nevertheless, Trump extended the solar tax credit, which has been the only thing keeping Elon afloat, so it's definitely not his fault. I'm not a business economics professor, but I think it probably has more to do with bottom lines. Just a hunch.
     
  8. AtomicPanther

    AtomicPanther Purple Belt

    Joined:
    Jan 17, 2008
    Messages:
    2,439
    Likes Received:
    645
    Location:
    Intercourse, PA
    Tesla: A high end Yugo
     
  9. HockeyBjj

    HockeyBjj Putting on the foil

    Joined:
    Jun 26, 2012
    Messages:
    8,525
    Likes Received:
    10,136
    Yep. But the wrench turners and button pushers are the ones hurt by this
     
  10. Bobby 3 Sticks

    Bobby 3 Sticks Blue Belt

    Joined:
    Dec 16, 2017
    Messages:
    759
    Likes Received:
    1,767
    Tesla should have partnered with a big company to mass produce the 3
     
    ralphc1 likes this.
  11. Bubzeh

    Bubzeh Pink Belt

    Joined:
    Jun 7, 2016
    Messages:
    7,554
    Likes Received:
    20,989
    Each of the 9% deserve good payoffs.
     
  12. JonesBones

    JonesBones Zuck Belt

    Joined:
    Sep 28, 2011
    Messages:
    22,632
    Likes Received:
    7,075
    Location:
    New York
    The article points out that this debt does not include Solar City, which many think is the biggest drag on Tesla. It is being kept afloat by Tesla and shareholders are not happy about it.


    https://www.bloomberg.com/news/arti...mess-tesla-s-other-problem-is-about-to-emerge

    The SolarCity debt is mostly non-recourse, meaning Tesla doesn’t guarantee repayment; SolarCity does. That’s backed by cash flow and assets. It’s still included in Tesla’s overall debt, though, which is used to determine credit ratings and impacts borrowing costs. Of Tesla’s $10 billion of total debt outstanding, about $3 billion is non-recourse, most of which comes from SolarCity.
     

Share This Page