1 AM Email Alerted Tesla Employees Of Looming Job Cuts

Tesla

JUN 16 2018 BY STEVEN LOVEDAY 10

Tesla employees involved in the recent layoffs were likely unaware of the situation until waking into work the day of a last-minute four-hour meeting.

Not long after Tesla CEO Elon Musk emailed employees to increase productivity, explaining that they should limit meetings and calls and focus on the task at hand, an email was sent in the wee hours of the night asking employees to set aside four hours for a video conference meeting. Musk previously told workers:

Walk out of a meeting or drop off a call as soon as it is obvious you aren’t adding value. It is not rude to leave, it is rude to make someone stay and waste their time.

Well, about 250 employees would be walking out of this meeting, but not until the four-hour presentation was over. Once they walked out, some would be finding the door and not returning.

According to several sources, including laid-off employees, and a person from Tesla Motors Club forum with inside information, the email came at 1 AM just hours before Tesla would announce plans to lay off 9 percent of its workers in order to work toward profitability.

Chances are, many of these workers were fast asleep and didn’t even receive the email until they woke, or even worse, until they arrived ready to work, only to find out that they had a four-hour meeting, which would end with them packing their bags.

One of the biggest complaints from many Tesla-skeptics is that the company has yet to make a profit. However, there are arguments on both sides. In terms of automakers, Tesla is considerably new and still funneling an exorbitant amount of capital back into building out for the future. But, at some point – and now we know that Tesla CEO Elon Musk agrees – the automaker has to find a way to show a profit. Musk said in another email:

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.

These cuts were almost entirely made from our salaried population and no production associates were included, so this will not affect our ability to reach Model 3 production targets in the coming months.

The good news is that the company’s stock has been rising once again, and even more quickly than it has in the past. We’ve seen share growth as high as seven percent recently and the stock currently sits just shy of $360 per share.

We can only wait and see if this move, along with the Model 3 production ramp, will lead Tesla to a true position of profitability in the near future.

Source: ZEENEWS

Categories: Tesla

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10 Comments on "1 AM Email Alerted Tesla Employees Of Looming Job Cuts"

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Much better situation than AVRO Arrow workers got, when Canada’s Prime Minister (Diefenbaker) Sold out to the American Beaumark Missle, and stopped production of the most advanced Aircraft to Fly, for over 20+ years!

“Waking into work”?

“The good news is that the company’s stock has been rising once again… We can only wait and see if this move, along with the Model 3 production ramp, will lead Tesla to a true position of profitability in the near future.”
A Move in the Stock Price will not lead Tesla to profitability. Q2 will likely be another record loss. With around 700-800m losses per quarter, that there is no realistic chance for sustainable profitability. Tesla predicted Profitability and positive cash flows 1 -2 quarters ahead several times in the past – all that happend were ever increasing losses.
Tesla could not make profits in the high margin luxury segement, so how should the become profitable in the lower marging mid price segment. Not only profitable, but so extremely profitable, that this can offset the current losses. With interest payments on the huge debt increasing from quarter to quarter.
No way.

I don’t think it’s good news that the stock market is so corrupt and idiotic that massive layoff announcements cause a company’s stock to jump, whereas an actual escalating trade war between the planet’s main economies doesn’t cause the market to drop.

True, if counter tariffs price Tesla of the European and Chinese markets it’s chances of survival will sharply diminish.

Assaf wall street stock market only cares about making money for ITSELF, I observed this during the Great Recession of 2007. Unfortunately wall street analysts will never care about our planet or workers.

Musk is persona non grata after this.

But isn’t it all about profits over workers? Wall street is happy LOL CONNECT THE DOTS ON CLEAN AIR WAKE UP co2.earth

This will not make them profitable, but will please the analysts Musk insulted.

I’m reminded of a story about a company that pulled a fire drill to get all of the employees out of the building.
Then escorted employees back in to the building in small groups. The ones who weren’t brought back in found out only then that they were laid off.

When I can find the specific citation, I’ll post it.