Tesla cuts 9 percent of workforce in search for profit

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

  1. JonesBones

    JonesBones Gold Belt

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    (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

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    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 Brown Belt

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    Tesla is perfect tho
     
  4. GSP_37

    GSP_37 Steel Belt

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    Is it short sale time?
     
  5. Liquid Smoke

    Liquid Smoke Great artists steal™

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    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 Brown Belt

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    This is all Trumps fault!
     
    uppercutbus likes this.
  7. Madmick

    Madmick Cerebrage Staff Member Senior Moderator

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    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 Brown Belt

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    Tesla: A high end Yugo
     
  9. HockeyBjj

    HockeyBjj Putting on the foil

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    Yep. But the wrench turners and button pushers are the ones hurt by this
     
  10. Bobby 3 Sticks

    Bobby 3 Sticks Green Belt

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

    Bubzeh Fighting Brexit

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    Each of the 9% deserve good payoffs.
     
  12. JonesBones

    JonesBones Gold Belt

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    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.
     

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