Tesla profits nosedive as more job cuts announced
(www.bbc.com)
from AmbiguousProps@lemmy.today to technology@lemmy.world on 24 Apr 2024 09:13
https://lemmy.today/post/9753205
from AmbiguousProps@lemmy.today to technology@lemmy.world on 24 Apr 2024 09:13
https://lemmy.today/post/9753205
Tesla has seen its profits more than halve this year, and says it will bring forward the launch of new models after announcing thousands of job cuts to try to reverse its fortunes.
Despite plans to bring forward new models originally planned for next year the firm is cutting its workforce.
Tesla said it would lose 3,332 jobs in California and 2,688 positions in Texas, starting mid-June.
The cuts in Texas represent 12% of Tesla’s total workforce of almost 23,000 in the area where its gigafactory and headquarters are located.
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A company who’s unable to meet customer demands should not be this profitable. It should use it’s revenue to invest back into growing the business to meet customer demand. This should be the real headline.
Didn’t Tesla already have issues with production anyways? Job cuts just seem like they’ll exacerbate the issue.
tesla was always a pump and dump. build it up quick, use it as financial vehicle, GTFO before it falls over.
they have never had an exit strategy or long-term plans for their products.
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i know edsel was thinking the same thing
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This subthread brought to you by: Coffee! DRINK IT!
They were the first. Now many others have better cars. Tesla quality is awful.
Elon doesn’t care about making the companies he owns work. He’s just looking for that next bong hit of attention he gets from keeping his name in the news.
He burned through tens of billions to buy Twitter, turned it to crap (well . . . crappier than it was) and he doesn’t care. He gets bored with his toys quickly if they don’t get him the attention he craves.
Yes, and it’s common for job cuts to only make things worse for companies over the following quarters. It only makes things more backed up. It only helps your stock price for this quarter.
Whatever you might think about the Cybertruck, it is sold through for at least the next year. I think they’re terrible–they look even dumber in person than in photos–but there are people who are lining up to buy one. Cutting staff does not sell Cybertrucks any faster.
A $25k Tesla EV would be a huge win, both in the US and (most importantly for the company’s bottom line) China. There are reports of it being canceled, which may or may not be true, but it does appear that Elon wants to go all in on a self driving taxi, and I don’t see that working. Even if it eventually does, it’s a huge gamble when there’s a very straightforward moneymaker sitting right there that doesn’t require any particular R&D breakthroughs. Looks like Kia/Hyundai are happy to take that market if Tesla doesn’t want it. Meanwhile, BYD is sitting over there figuring out how to enter US and EU markets. Telsa is stuck with a stupid polygon truck.
Yeah, but that’s not really saying anything considering that their production numbers have been awful. They claim that they should be able to reach 125k this year, but there have been reports of them only managing to produce around 80 a day, which is only around 30k a year.
And that was before the recent recalls and qc problems. Stainless steel is just an unforgiving material to work with, it’s gonna take them a while to reach mass production while maintaining any kind of quality control measures.
Production numbers are awful, but that’s only more reason why laying off workers is a bad move.
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Who could see this coming when they decided to spend so much time and money developing an expensive steel box that rusts. Imagine if the CEO had any idea what they were doing and decided to focus on making actual cars
There’s a lot in East Austin near the Giga factory with hundreds of Cybertrucks that don’t seem to be moving…
Honestly though, the size of that building is obscene. It’s hard to look at it and not think vanity is playing a serious role in top-level decision-making at Tesla.
Lower sales > Lower profits > cuts across the board (except c level) > lower quality > lower sales … aka the death spiral… hope they can halt the decline but their unique position as the only real electric car brand ended 5 years ago… with their prices they compete with Audi, Mercedes, BMW, and the other premium brands.
Edit: my point was indeed that their competition has better quality so the competition does not really work.
'compete' hahahahahaha
Price of a mercedes, panel gaps of a lada.
be respectful to Ladas, they can survive a carwash
yeah, at least a couple of times
Other than on price, Tesla is just not on par with premium German brands.
And the Chinese EVs beat everyone on price…
But Americans aren’t allowed to buy them
If we had access to those, lots more Americans would be driving EVs.
www.latimes.com/…/china-ev-war-tariffs-tesla
We’re not allowed to buy them because other companies can’t compete, but even without being able to buy them, EV makers are going out of business.
The rich get protected while consumers and the environment gets fucked over
We could never sell those dirty ChiCom cars in the US! Can you imagine what would happen if those cars collected your driving habits and reported them back to
Ford GM Stellantis Tesla Honda VW Toyota Hyundai SubaruXi Jinping!?I wonder why their after hours stock price skyrocketed.
Dead cat bounce?
There’s a pandemic term I haven’t seen in the wild for a hot minute.
“Dead cat bounce” has been a term in stocks for 30+years…
TIL thanks
When a stock drops by a lot there’s usually a low point at which some investors will start buying it again because it got so cheap. This drives the price higher but only temporarily. This is called the “dead cat bounce.”
I was going to to ask the same thing. Up over two dollars in premarket trading.
My only guess is that there were rumors of layoffs, and the stock market LOVES when the middle class gets fired.
It was because they announced they were speeding up their plans for their affordable next gen vehicle earlier than already announced, which was H2 2025
Now it’s late 2024/H1 2025
They are ditching their next gen “unboxed” production method to do this however and leaving that for the robo taxi. The vehicles will be a hybrid if their next gen tech and existing tech. They claim the new models to be released will be built on the existing manufacturing lines, getting them to over 3mil vehicles a year.
These will be more akin to a gen 2.5.
Robo taxi will be gen 3
If their unboxed plans work with the taxi, they’ll use it for other vehicles in the future.
Edit: they basically derisked the cheaper vehicles by foregoing the risky new production method that would make it cheaper in the long run, by figuring out how to use their existing lines, also making it cheaper. But in the grand scheme of things i imagine this hybrid way will have less margins than a successfully implemented new way.
Also, some of the price crash was from Reuters reporting they abandoned the cheaper vehicle in favor of robotaxi and there’s been uncertainty for weeks now ok the topic, until now.
Thanks for the details! All I saw anywhere was the bad news, but this does sound like a good reason for optimism if you can trust this company.
That’s the key point. After all the other delays, they need to show they can do something on time now to gain some of that back.
It feels like this announcement was 100% to keep the shareholders happy with probably very little planning ahead of time.
I was thinking it’s more like their contingency plan for if unboxed was a catastrophe.
If they can actually pull off the accelerated, shared manufacturing lines plan, it feels like it’s too fast to be on a whim with no planning.
I do agree though it’s probably to keep shareholders happy as the cheaper EV landscape unfolds and they were falling behind.
Weren’t people estimating a *2027 end for Tesla bc they haven’t been working on new models? They put their efforts into the meme “truck” instead of the roadster. They have been slashing prices yet demand for EVs, especially theirs has been dropping. All the while, their main spokesman has been a toxic deterrent. Meanwhile, these douchelords think The ceo should get a $56B payout?
What? How is that supposed to make any kind of sense?
I don’t know exactly what you’re asking, sorry. Could you clarify?
Did you mean 2017 or 2027? I don’t think Tesla existed back in 2007.
I’d guess 2027, since all the stuff mentioned are things that are culminating more recently.
That said, the company’s best long term asset is probably the charging network. Especially since other manufacturers are adopting their plug. But that’s boring, and Musk isn’t a guy who cares about the boring stuff. He’s exactly the type to ignore the company’s best strategic direction just because he can’t make grandiose claims on Xhitter about it.
There were no efforts put into the “meme “truck”” in 2007, it wasn’t even speculated on being made yet. There were speculations back in 2007 that Tesla might not make it, because they had financial problems. But those speculations have zero relevance today.
Your post is nonsensical.
The roadster was the only Tesla I liked, and it’s no coincidence that it was pre-Elon.
The original roadster is just a lotus Elise with a terrible DIY EV mod thrown in to it.
It’s based on a lotus design, so yeah it’s got some great parentage.
I think the headline was supposed to say: “Nut job announced cuts.”
Nut job cut jobs
I couldn't imagine being a software engineer for Telsa, pouring your heart and soul into making a good product.
And in your bosses' drunken haze, gets to make an ass of himself on the world stage and get paid 1,000,000,000x your salary to do it.
Lose advertising investors, lose quality and face on the products you have to build. Still gets to be CEO of three failing companies
But your job is the one that gets canned to save the stock price.
Edit: loose
You’re a little loose with those extra Os there.
Technically $56 billion.
Or in job terms, 466,667 jobs that pay $120,000 a year.
They were talking about your use of loose in place of lose.
Thank you
Is SpaceX failing?
It’s sad to say, but I’m glad we’re at a point where shareholders now look at job cuts as a negative, and layoffs don’t result in an increase in share price.
Amazon have been cutting jobs for their third year running now, on top of URA, and the only thing keeping our CEO in a job right now is happy shareholders.
I don’t think they do view it as negative, their stock is climbing aggressively on this news.
Well. It’s climbing based on today’s news.
The layoffs have been known for a while so it seems more likely that it’s climbing based on other factors, like the hokum about still focusing on a low-prices car.
<img alt="" src="https://lemmy.ca/pictrs/image/810a2936-670a-4ca4-a918-50670c9c6c32.png">
You must be looking at a different chart.
<img alt="Yep" src="https://lemmy.world/pictrs/image/d5d8998e-08f0-45c0-a0ff-1a6d109d58f1.png">
A 6 month chart is supposed to correlate with the effect of today’s layoffs announcement?
The layoffs were known last week though.
Sure, the news is finally talking about the layoffs, but people were locked out of their badges and complaining last week about this. So now its official today, but it was public knowledge last week when that price declined dramatically.
So the employees were nominally on the books until today. Big woop. They stopped working a week ago and complained about it online. You can’t hide a mass of 10,000+ sad and angry employees talking shit about Tesla. The stock moved on that before the official layoff announcement today.
HFT algorithmic robo-traders still gonna scalp daily delta, often in an incestuous and self-reinforcing cycle based on financial headlines
I’ve been bearish on Tesla for years, but it’s getting increasingly obvious with growing EV competition that their market cap is/was absurd hype that defies fundamentals or even possible value if Tesla was a monopoly
God fucking damnit, I hate Wall Street.
Best example of how Monkey-brain driven the markets are.
Zoom out about a week.
<img alt="" src="https://lemmy.world/pictrs/image/fa3f7130-5bdd-4d16-92a8-05e927063332.png">
Its fair to say that last week, TSLA was oversold and is now bouncing back from that. But the -55% profits and -$2.3ish Billion FCF are bad numbers.
TSLA is down from $180, where it was just a few weeks ago. $140 prices this past week apparently was too low, but there’s no chance in hell that TSLA goes back up to pre-Q1 announcement numbers. Q1 2024 was awful. Declining sales around the world in all major areas: China, Europe, AND USA. They’re weak everywhere.
I wonder for how long they could pay those employee’s salary for with that $56Bn paycheck Musk is trying to give himself.
And if it’s tanking, Musk is responsible and shouldn’t be paid any bonus because he failed them.
Tesla is a slow motion train wreck. Their answer to the china low cost cars was a Robo Taxi. They are completely out of touch with the ev market now.
Yeah but come on. They spent years making a “Delorean, but now its a truck!” that rusts in the rain, has barely 180miles of actual range, has a non standard pickup truck bed, cant tow worth shit, cost between 60k and 100k dollars, has such shoddy workmanship that the accelerator pedal can fail and jam on, and they managed to sell a stunning 3800 of them in 6 months.
Whose got time for a blockbuster, feverishly in demand 20k electric sedan when you have “a kool dude” like the above to work on for 3 or 4 or 6 years.
Actually, they’re speedrunning the Boeing approach.
“Announce new technological marvels while simultaneously slashing their workforce” is just two steps before “product falls apart during usage”.
I mean, cybertrucks get bricked in a carwash, pretty sure that qualifies under usage and falling apart
Honestly the welding and soddering joints breaking down in some vehicles is also a pretty good example of dropping quality. The cybertruck is a mess from the start but the other cars in theory are kinda ok, like I would fucking burn one if it was force on me but I think late 80s interiors are peak.
I thought Teslas were already doing that. 🤔
🥹
Ah yes, the autonomous cars that are limited to only cameras and not any other form of sensor like radar/lidar will be so successful!
It doesn’t matter what sensors you have. Autonomy is a pipe dream.
Autonomy is not a pipe dream. It might not happen with Teslas sensors, and it might not happen for many many more years, but it will happen.
There’s nothing unattainable about it with sufficient technology
Well of course but that statement is writing a blank cheque. Let me cap my statement.
“…within the next century”.
My pet theory is that self driving will start to really gain momentum when new construction in gentrified areas start designing roads with aids for self driving. It would require a degree of standardization to work across different manufacturers though.
ok. not gonna be an investor now. good advice 👍
(not that i planned to, but ok)
I’ll pass on this bet. It’s the Pareto law at its worst: impressive advancements in the first years and now progress halted by a million edge cases.
Our Very Stable 4D Chess TwitterBoy Genius has become so fantastically effective in killing his brands.
First Twitter.com, then TwitterCars and the TwitterTrucks.
Will he kill SpaceTwitter too?
And what about TwitterDigger? Is this still a thing?
Boy is battin a thousand
…
?. Profit