Tesla Initiates Brutal Purge Of Contract Employees

Over the past few weeks, Tesla CEO Elon Musk has been warning of a focus on efficiency at Tesla’s Fremont factory and he has been expressing a specific concern over contractors and sub-contractors working at the automaker.

After announcing a review of all contractors, Tesla has now engaged in a brutal round of firing that could see all contractors who are not personally vouched for by an official Tesla employee go.

The situation started to first come to light in an email from Musk to all employees that was leaked to Electrek a few weeks ago.

In the email, Musk wrote:

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SanJoseDriver - 5/20/2018 7:40:38 PM

+1 Boost

Missed this one lol. I'm all for it, you have to trim the fat every once and a while, that should apply to all companies. They are also getting rid of some middle-managers from a separate leaked email to reduce bureaucracy.

TheSteve - 5/7/2018 4:06:35 PM

+3 Boost

This is just one more sign of cash shortage problems. This is a ploy to demonstrate "cost containment efforts," which will be spun by Musk as an example of his brilliant management strategy, in the hopes that it'll bolster investor (stockholder) confidence.

Wait for it... is that the sound of another Tesla Motors stock offering... or another Junk Bond issue?

vdiv - 5/7/2018 6:43:12 PM

+3 Boost

Musk just bought $10M worth of shares. Time to grab more popcorn it may be awhile ;)
https://electrek.co/2018/05/07/elon-musk-buys-tesla-tsla-stock-short-squeeze/

mre30 - 5/7/2018 4:13:14 PM

+5 Boost

Hopefully by this point, anyone left who still wishes to drive a Tesla, leased one and did not buy one.

If you are a lessee and Tesla goes T*ts up, then you can just drop the car off with the keys (or have it towed there to the location).

This is about to be a huge mess.

TomM - 5/7/2018 8:45:30 PM

0 Boost

Actually - that is not true- MOST leases are financed through outside financial institutions - and WILL NOT END with the end of the company. You could even tow the car to a former tesla facility - that might be littering on a new owners or banks property. - THe problem - you still will have to pay down the lease till the end.

History of auto loans is littered with thousands of so called "Extended Warranties" financed through the auto loan - that still have to be paid for - even if that company goes belly up (ANd plenty have done so) - and repairs are now YOUR problem too.

vdiv - 5/7/2018 6:41:39 PM

+1 Boost

https://www.youtube.com/watch?v=uUTEMkHmVbw

MDarringer - 5/7/2018 10:05:34 PM

0 Boost

Uh oh...we can't afford to pay people so let's fire them.

malba2367 - 5/9/2018 11:30:10 PM

0 Boost

Sounds like an organization with no real management structure in place. There is Elon and the top level executives and below them it is a free for all. If they had a real management structure in place you would not have contractors running rampant with t&m contracts.