Tesla To Cut Workforce By 7% While Increasing Model 3 Production

This is not a surprise. Elon Musk has constantly stated his desire to sell the Model 3 profitably at $35,000. With Tesla's costs prior to this 7% layoff that wasn't possible. Each Model 3 sold at $35,000 would have lost money.

After expenses come down due to this 7% workforce cut, Tesla could very possibly make a profit selling the Model 3 at $35,000.

You should lern to read. Then one day you might know, that a CEO is not a chairman of the board.
Then again, maybe not.

Demand for the 3 is dead. You can order now and get one by the end of Jan (less than 2 weeks).

And all of the necessary cost-cutting means no Model Y, no new factories, no expanded service networks, no semi...

Tesla desparately needs a prepackaged bankruptcy to survive but Musk would rather go up in flames unfortunately for all involved.

Tesla grew the workforce by 30% last year, did you read the article? If they are looking for efficiencies perhaps they can slow down the revolving door a bit.

So last year he cut the workforce by 9% and then increased it steadily throughout the year by adding back the same number of people. Now he is cutting 7%. Sounds either impulsive or that he is once again feeding Wall Street the pablum it wants to hear.

The 9% reduction last year was mainly from the Solar/Power BU, this time I think it's in the Vehicle BU. If anything, it shows how agile the company is in shuffling its resources to adapt to the rapid changes during the production ramp and fast growth. Laying off one group of skill set while hiring another group for a different skill set is what's happening at Tesla - or any agile tech company not burdened by the unions.

A big drop in $TSLA price today is a good opportunity to reload for the next ride.

Standard business practice to allow managers to cut lowest performers.

What I find hilarious is the Lefties who support Tesla and are OK with Tesla killing off jobs are the same people who get volcanic with rage if GM announces layoff. They put on their UAW t-shirts and go all #SJW like the true hypocrites they are.

I thought the same thing. Where is the outrage over laying off US workers and opening a plant in China after using US tax rebates to sell their cars?
To EVisNow, laying off workers is never a sign of good things ahead. Tesla stock has dropped 20 percent in recent weeks as the reality that the sales rate of the model 3 was mostly filling backlog and earnings do not exist for anything under $50 K. Stock will continue to fall.

For a fit person, trimming extra fat increases endurance. For a fat person, that is too hard to do so he remains fat and slow, and he may keep getting fatter.

Similarly, an agile company regularly trims its workforce to make it more efficient, especially after rapid growth bursts. Tesla cannot depend on normal attrition because the low performers don't usually leave until they are forced to. Don't forget that Tesla is still hiring for other positions in need.

The difference between Tesla's and GM's layoffs is that GM is a fat guy who keeps getting fat until whole limbs have to be cut off (plant shutdowns and selloffs). Tesla on the other hand goes for a good workout and get ready for the next marathon.

As for the $TSLA price drop, it's a good opportunity to buy the dip. I would rather take the risk with Tesla than buying $F at its lowest price in years.

Companies don't exist to create jobs, they exist to generate returns for their owners. Happy to see Tesla or GM or any other company in any other industry make whatever decisions they feel are in their best interest to compete.

Half the so-called Republicans in here seem to think the US government should get involved in these decisions like some failed communist business model with state owned car companies.