Tesla Starts 2nd Quarter With Layoffs Following 1st Quarter Delivery Shortfall

Tesla Inc. followed a disappointing deliveries report by cutting another swath of sales staff across the country, as the electric-car maker continues to pare back personnel and shift its ordering process online.

The company dismissed several dozen sales team members on Thursday in Chicago Brooklyn and Tampa, according to people familiar with the matter, who asked not to be named because the details were private. Tesla confirmed the cuts but declined to discuss specifics including the number of personnel affected.

The latest round of staff reductions are part of the retail retrenchment Tesla announced in February. CEO Elon Musk has said the decision to close some showrooms and embrace an online-only ordering model is designed to save money as the company ramps up production of cheaper Model 3 sedans and prepares to launch new models including the Model Y crossover next year.

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Truthy - 4/9/2019 10:02:59 AM

+3 Boost

Roh-roh. One statement from Tesla's financial filings last week that has analysts stunned is that "we have sufficient cash on hand...> Not being specific about cashflow when that is one of the larger concerns is a giant red flag.

Wait, I hear a fat lady clearing her throat.

jtz7 - 4/9/2019 1:02:14 PM

+1 Boost

Layoffs? I thought Telsa was doing good?

Truthy - 4/9/2019 2:06:11 PM

+1 Boost

Rumor has it they were shocked.

bmw7er - 4/9/2019 7:07:54 PM

0 Boost

Tesla is 3 years from extinction.

MDarringer - 4/9/2019 9:18:53 PM

0 Boost

You meant three months.

MDarringer - 4/9/2019 9:20:03 PM

+1 Boost

Bold prediction: A big company (Hyundai? Geely? Fordwagen?) will buy Tesla.

SanJoseDriver - 4/11/2019 12:08:54 AM

+1 Boost

For what other company is laying off a couple dozen people news? Ford had like 3 CEOs in the last 4 years and Tesla lets go a handful of low-level employees and people act like it is front page news.