Tesla’s Value Is Crashing Like a … Well, Like a Tesla
Electric vehicle manufacturer Tesla announced Monday that it will be laying off more than 10 percent of its global workforce—at least 14,000 employees—following a catastrophic first quarter, in which the company missed delivery estimates and suffered a year-over-year reduction in sales.“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,” Musk wrote, blaming the cuts on redundancies in a leaked memo to employees first obtained by Electrek. “There is nothing I hate more, but it must be done. This will enable us to be lean, innovative and hungry for the next growth phase cycle.”While it’s unclear which teams will be most significantly affected by the layoffs, news of the cuts came hand in hand with resignations from some of the company’s top talent.“I made the difficult decision to move on from Tesla after 18 years yesterday,” Andrew Baglino, Tesla’s senior vice president for energy engineering and powertrain, wrote on Monday. “I am so thankful to have worked with and learned from the countless incredibly talented people at Tesla over the years.”Stock traders were quick to observe, however, that Baglino had been offloading millions of dollars’ worth of Tesla stock each month for the last several years.Rohan Patel, Tesla’s vice president of public policy and business development, also put in his two weeks’ notice after the automotive giant announced the cuts, writing his thank-yous to the company’s customers, his fellow employees, his parents, former President Barack Obama, and Tesla’s CEO, Elon Musk.“The past 8 years at Tesla have been filled with every emotion—but the feeling I have today is utmost gratitude,” Patel posted on X.Tesla has been struggling with complaints stemming from myriad issues with its car models, as well as with its latest release, the Cybertruck. The company froze Cybertruck sales on Monday after it was reported that the vehicle’s gas pedal cover had become dislodged, pinning itself against the floor for at least one customer. In 2022, complaints related to the Tesla’s misadvertised driving range became so pervasive that the company developed a secret “Diversion Team” to suppress the noise.Tesla will deliver its quarter one report on April 23. “Analysts estimate that Tesla will still turn a profit of around 50 cents a share, down from 85 cents a share in Q1 2023,” reported Electrek.
Electric vehicle manufacturer Tesla announced Monday that it will be laying off more than 10 percent of its global workforce—at least 14,000 employees—following a catastrophic first quarter, in which the company missed delivery estimates and suffered a year-over-year reduction in sales.
“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,” Musk wrote, blaming the cuts on redundancies in a leaked memo to employees first obtained by Electrek. “There is nothing I hate more, but it must be done. This will enable us to be lean, innovative and hungry for the next growth phase cycle.”
While it’s unclear which teams will be most significantly affected by the layoffs, news of the cuts came hand in hand with resignations from some of the company’s top talent.
“I made the difficult decision to move on from Tesla after 18 years yesterday,” Andrew Baglino, Tesla’s senior vice president for energy engineering and powertrain, wrote on Monday. “I am so thankful to have worked with and learned from the countless incredibly talented people at Tesla over the years.”
Stock traders were quick to observe, however, that Baglino had been offloading millions of dollars’ worth of Tesla stock each month for the last several years.
Rohan Patel, Tesla’s vice president of public policy and business development, also put in his two weeks’ notice after the automotive giant announced the cuts, writing his thank-yous to the company’s customers, his fellow employees, his parents, former President Barack Obama, and Tesla’s CEO, Elon Musk.
“The past 8 years at Tesla have been filled with every emotion—but the feeling I have today is utmost gratitude,” Patel posted on X.
Tesla has been struggling with complaints stemming from myriad issues with its car models, as well as with its latest release, the Cybertruck. The company froze Cybertruck sales on Monday after it was reported that the vehicle’s gas pedal cover had become dislodged, pinning itself against the floor for at least one customer. In 2022, complaints related to the Tesla’s misadvertised driving range became so pervasive that the company developed a secret “Diversion Team” to suppress the noise.
Tesla will deliver its quarter one report on April 23. “Analysts estimate that Tesla will still turn a profit of around 50 cents a share, down from 85 cents a share in Q1 2023,” reported Electrek.
