Elon Musk wanted Tesla to slash its headcount by 20% because its quarterly vehicle deliveries fell by that much, Bloomberg source says
Elon Musk wanted Tesla to slash its headcount by 20% because its quarterly vehicle deliveries fell by that much, Bloomberg source says
Musk told Tesla staff in a memo that the company's "rapid growth" had resulted in "duplication of roles and job functions in certain areas."
- Elon Musk wanted Tesla to reduce its workforce by one-fifth, Bloomberg reported.
- Musk wanted the layoffs to match the drop in quarterly vehicle deliveries.
- Tesla delivered 386,810 cars in the first quarter of 2024, a 20.1% drop from the last quarter.
Tesla CEO Elon Musk at one point wanted the EV giant to trim its workforce by 20%, Bloomberg reported on Sunday, citing a person familiar with the matter.
The reduction, Musk reasoned, should match the reduction in vehicle deliveries between the fourth quarter of 2023 and the first quarter of 2024, per Bloomberg.
If a full fifth of your workforce needs to be sacked, it's clearly a management issue, so let's start at the top.
He needs to fire the idiot in charge of the whole thing. I bet Tesla could make a recovery if he wasn't at its helm, even if he still owned the same amount of shares. Even more so if his ego could handle hiring a replacement that was all too happy to vocally throw him under the bus.
I think the problem is that it’s such a house of cards. It has no reason to be worth the current stock price which is higher than multiple larger car brands combined. The stock value is based on this legacy idea that Musk will deliver amazing innovation. If he stays, his Twitter bullshit is going to negatively impact the brand and if he leaves, the stock will drop to a realistic valuation based on fundamentals. It’s a bit of a lose/lose.
He needs to fire the idiot in charge of the whole thing.
Thats not his job. That's the boards job. And yes, that's what they need to do.
Naw, their long term fucked by the Cybertruck pr-orders. They can’t reliably manufacture it quickly enough to make good profit on it. Firing 20% of their manufacturing people is likely just gonna make building them harder.
And they have to build like 750k more of them at a rate of less than 100k per year.
Long term fucked by a child’s design of a truck.
Okay, so we need to fire one fifth of Elon Musk. (Instructions unclear. Is a saw involved?)
the top 5th, to be clear.
Use a trebuchet, if the other 4/5 goes with the 1/5 he has no-one to blame but his own inability to transsubstantiate
It’s called a guillotine actually
A barrel of sulphuric acid and a crane, its cleaner and makes disposal simple.
We have sold 1/5 less cars. So we need 1/5 less workers.
And people were questioning if he was worth his enormous pay packet.
"Why are we selling less cars, Elon?"
The fact that absurd amounts of money can take someone this dumb this far is frankly insulting and disgusting.
Sometimes, people fail upwards.
It just goes to show how easy it is to make money with money and no moral compass.
I've been in multiple meetings with Elon Musk. He is honestly very smart... in some ways. That was back when he was just barely a 1 billion-aire and came close to being bankrupt. I think a combination of years of overconsumption since his multi-billionaire status allowed him to not be as on-point plus him being on the spectrum and not being smart in other areas (like running a business) brought him to this point.
Let's say we take this at face value and that reducing staff by % reduction is the 100% right move to do.
In Q1 tesla faced a week long outage at Berlin due to an attack on a power station.
In Q1 tesla had a multi week outage due to rerouting ships around the red sea due to ships being attacked.
That's a pretty substantial downtime for a factory in a single quarter.
Making a % to % comparison like that and ignoring wtf happened that quarter is senseless.
Edit: I also think it was the 1st quarter without the incentive on some cars in the USA and that shock takes time to adjust for.
Also it's weird to compare consecutive quarters instead of year-over-year quarters, isn't it?
Yes you don't normally compare q4 to q1 because cars are seasonal.
For example, the Chinese new year is in Q1 and always results in fewer cars.
It should always be comparing the same quarter as the previous year.
The media often uses this to their advantage to paint good or bad pictures of companies depending on if their masters want someone to look good or bad.
You need both and trailing twelve months as well as annualized and probably a few others to get a complete picture. Cars have a lot of seasonality, so you’re absolutely not wrong.
It's pure and utter nonsense. If that was orthodoxy or even good sense no company would exist. You have no sales as a new company do you have 0 staff or do you need to hire people to build product and make sales before you have ever sold anything? The company sales increase by 10,000% by going from 1 sale to 100 do you increase your workforce by 10,000% too?
The man's brain is cheese from the drugs.A fragile clown gets enraged by a number and takes revenge.
Yep, that’ll fix the problem. Definitely when the head is necrotic, cut out the heart.
You’re all fired but I expect $56b!
To misquote an old ad: maybe he's stupid, maybe it's ketamine.
https://www.cbsnews.com/news/elon-musk-don-lemon-interview-x-ketamine-use-tesla/
Likely it's both-amine
Likely it's both-amine
This is one of the things about businesses I don't get.
If you cut your staff, your ability to make money goes down with them. Why would layoffs be the reaction to reduced sales? It's like they don't have any money in savings or something.
Oh wait.
They don't get paid in relation to actual performance. They get paid in stock. Which means they work to the performance of the stock. If you want a well performing company then you should tell your CEO they only get paid in relation to marginal profit. That incentivizes shipping a product that people want or need and bringing in sustainable revenue. Then make it clear that safety violations and mandatory recalls (but not voluntary) are paid for from the CEO's compensation.
The entire idea of stock based ownership in companies is a poison pill to capitalism and the economy in general. Owning stock should make you a creditor, nothing more. We can have ownership by contract. Then we can also tax stock without worrying about Elon Musk losing his companies.
A fucking genius everyone. This is the guy we're protecting with domestic EV rebates. This and the "Surely Americans just want giant pickup truck EVs" crowd.
We deserve to have Chinese companies obliterate our domestic market, just like we deserved the Japanese companies. Maybe if we stopped letting giant corporations form we'd have actual competition and our markets would be harder to break into without the government playing favorites.
I am the dumbest man alive meme.jpg
Is it bad to wish that he just goes under with all of his companies and that he goes bankrupt completely so I don't have to see his ugly face all over the internet?
Not at all, nobody wants to hear what stupid, hateful shit the Boer has been doing for the 2,078th day in a row, and I’d also like to see all the bazingas who line up to huff his farts go with him because they’re utterly insufferable too
The sad thing is that he'll never go under. Imagine he'll actually lose all his money, like actual 0 dollars on his bank account. He could do the dumbest shit evel like becoming an influencer or livestreamer or just e-begging and his fanboys will shove money up his ass.
Emanuel. Jean Baptiste. Zorg.
At least he had charisma.
Maybe if he sends the thinking face emoji to more Nazis he will turn public sentiment around.
Is that how Elonomics works?
Gonna start running into the lump of labor fallacy real soon bud. Once cut that 20 percent ain't coming back, and finding replacements ain't simple.
I was generally considering getting a model Y, but learned that they can’t be exported overseas and still don’t have CarPlay and Android auto. Not to mention that it’s seemingly impossible to get an insurance quote without buying the car first???? Sorry, I’m going with another company.
don’t have CarPlay and Android auto
wut
They have their own systems for maps and apps and whatnot. Although music and phonecalls and things from your phone still work.
While I love BYD's prices and products, I'm currently enamoured with Xiaomi's SU7 they've announced.
Hehe. Number equal number. I smart.
Checkmate logicians.
4D chess (was 5D but 1/5th of the dimensions got downsized)
This guy's opinion seems pretty extreme. Maybe he needs 1/5 fewer extremities.
So, cut his dick off?
What a genius. /s
wouldn't this just make the problem worse
Yes. Much worse.
What the fuck logic does this dumbass employ?
"We failed to reach our quota in time. Let's reduce the number of workers so we make even fewer next time!"
Is he assuming each worker spends X time doing their thing, so more workers = more time? 🤦♂️
Yeah, that was my take as well. If demand was low, okay maybe. But failing to meet delivery targets? Reducing staff isn't going to help that.
Our workforce failed to meet a quota set by management, so we're laying off some of those workers
What a strange I mean stable genius
He must be really mad if he didn't try to make work in the numbers 420 or 69.
Like saying he wanted to keep only the lowest paid 69 percent, or something like that.
Hope he also cut his salary that much and the same for all C-levels. Somehow, that never seems to happen. They all worked admirably.
Looks like the Elonmobile isnt selling well
Do it, you psychotic shithead.
Profits:
What a Genius™️
But… he used percentages. That means he’s a smart businessman who understands how numbers work.
I'm not suprised by this. Tesla's outlook is terrible. Their sales have dropped a lot, and Chinese EVs are destroying Tesla.
Not just Chinese (although they are now the biggest), Korea is doing well, too.
I can afford a Tesla, but I want to see this $25k Tesla through since it looks to be a much simpler vehicle with all the manufacturing efficiencies.
He's only been talking about it for 15 years. Good luck with that.