In the wake of reports suggesting impending large-scale layoffs at Tesla, the electric vehicle giant finds itself once again in the spotlight for reasons beyond its automotive innovations.
Electrek, a prominent source for Tesla news, has recently hinted at the possibility of significant job cuts within the company, with some sources speculating figures as high as 20 percent of the current workforce.
This news comes amidst a series of challenges faced by Tesla, including production setbacks and uncertainties surrounding its future model line-up.
One of the focal points of concern is the Cybertruck, Tesla’s much-anticipated electric pickup.
The company has announced plans to shorten production shifts for the Cybertruck, signalling potential troubles ahead. Reports earlier this month suggested a diminishing interest in the futuristic vehicle, with wait times reportedly dwindling to nil.
What’s going wrong?
Beyond the Cybertruck woes, Tesla is grappling with a broader issue of product pipeline stagnation. The absence of new models in the foreseeable future, possibly extending until 2026 or beyond if rumours of a scrapped cheap sedan hold true, poses significant challenges to the company’s long-term growth prospects.
Tesla’s stock performance reflects these concerns, with shares languishing near the bottom of the S&P 500 index for the year, down over 30 percent. Although there has been a marginal uptick of 0.3 percent in pre-market trading, analysts remain sceptical about the company’s ability to navigate its way to profitability solely through cost-cutting measures, given its lofty valuation.
The disappointment extends beyond the financial realm, with Tesla’s Q1 delivery numbers falling short of expectations, further exacerbating investor worries.
Despite these challenges, Tesla and its shareholders are pinning hopes on the prospect of a future dominated by autonomous driving technology, particularly the much-discussed “robotaxi” concept. Whether this vision will materialise remains to be seen, but for now, Tesla finds itself at a critical juncture, balancing the need for immediate financial stability with the imperative of long-term innovation and growth.
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.
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