Tesla cuts 9 percent of workforce in search for profit

[JonesBones]

(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

 

[sub_thug]

At the start of April, the company’s shares had fallen by around 35 percent from a peak hit last September but signs that it is on course to meet an output target of Model 3 cars have wiped out almost all of this year’s losses.

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?

 

[Bamboozled]

Tesla is perfect tho

 

[GSP_37]

Is it short sale time?

 

[Liquid Smoke]

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.

 

[Limit Smasher]

This is all Trumps fault!

 

[Madmick]

This is all Trumps fault!

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.

 

[AtomicPanther]

Tesla: A high end Yugo

 

[HockeyBjj]

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.

Yep. But the wrench turners and button pushers are the ones hurt by this

 

[Bobby 3 Sticks]

Tesla should have partnered with a big company to mass produce the 3

 

[DC23]

Each of the 9% deserve good payoffs.

 

[JonesBones]

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.