Tesla Plans To Lay-Off 10% of Its Global Workforce

Tesla Plans To Lay-Off 10% of Its Global Workforce

Last summer, I noted that electrical vehicle EV) sales were running out of fuel.

…[T]he CEO of Toyota has reported most of his colleagues do not think EV-only transportation is sensible, practical, or realistic. EV drivers are experiencing “range anxiety,” and short trips have doubled or more in time due to charging times. Blackouts, especially during the summer heat waves, make reliance on EVs impractical.

Americans seem to be less trusting of “The Science” and are now climate-crisis-questioning. This may, in part, explain why there are now reports of a slowdown in EV sales.

Tesla, the most iconic of EV manufacturers, seemed to be avoiding this skid. Unfortunately, the realities of being a niche market with every increasing costs associated with production have caught up with the firm headed by billionaire Elon Musk.

Tesla ill lay off more than 10% of its global workforce, according to a memo sent to employees by CEO Elon Musk.

The company’s shares closed down more than 5% on Monday.

“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,” Musk said in the memo obtained by CNBC.

“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,” the memo said.

Furthermore, EV sales continue to decline and other car companies are beginning to make alternative production plans as a result.

Nearly 269,000 electric vehicles were sold in the United States in the first three months of this year, according to Kelley Blue Book. That was a 2.6 percent increase from the same period last year, but a 7.3 decrease from the final quarter of 2023. And amid the quarter-to-quarter slowdown in the industry, Tesla’s market share has fallen from 62 percent at the start of 2023 to 51 percent now.

…Ford’s E.V. market share jumped to 7.4 percent from 4.2 percent in the past year, making it the second-largest electric vehicle brand in the United States. Ford, however, announced this month that it was slowing down its E.V. production plans in response to slowing demand.

There were hints earlier this month Tesla was having problems. And it appears plans to build a less expensive EV have been scuttled.

Earlier this month, it was reported that Tesla’s quarterly deliveries declined for the first time in nearly four years and fell short of Wall Street analysts’ estimates. Tesla announced at the time that it delivered roughly 387,000 vehicles in the first quarter – well below expectations of about 443,000 and an 8.5% decrease compared to the first quarter of last year.

…Reuters also reported earlier this month that Tesla was abandoning its long-touted plans to produce a budget-friendly starter car, purportedly called Model 2, that was expected to start at $25,000.

Until there is a charging infrastructure network that can accommodate the entire American public, an electric grid that can handle capacity, enough natural resources to build models at a moderate price, and technology that doesn’t ignite when it gets wet or won’t start when it gets too cold, this may be the beginning of the end of the road for EV-mania.

Well, except for in the minds of lunatic eco-activists who are pushing their insane “Net Zero 2050” agenda. If we could power cars with their hot air and smugness, then we would be able to run our vehicles forever.

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