Tesla’s layoffs and executive departures took a bite out its share price this week.
The well-known electric vehicle company shed around 10% of its staff, impacting an estimated 14,000 staff or more.
It missed delivery estimates for the first quarter, has reportedly reduced hours for the production-line of its Cybertruck, and is seeing rivals in China stack market share with low-priced EVs.
Tesla, in other words, helped foster the global electric vehicle market, but is losing some of its primacy in that same market.
In human terms, for every dollar of car that Tesla sells, it generates far more company worth than its rivals.
Tesla layoffs hit high performers, some departments slashed, sources say 'I lost 20% of my team, some really good players too'Tesla management told employees Monday that the recent layoffs — which gutted some departments by 20% and even hit high performers — were largely due to poor financial performance, a source familiar with the matter told TechCrunch.
High performers also cutMany of the laid-off employees were high performers, according to two sources who spoke to TechCrunch on condition of anonymity.
Some departments saw layoffs beyond the 10% outlined in the companywide email, according to sources.
In 2022, he told employees that he wanted a “clean robotaxi” with no steering wheel or pedals.
Patel told TechCrunch he decided Sunday evening to leave Tesla because of “[b]ig overall changes” at the company.
Tesla layoffs hit high performers, some departments slashed, sources say 'I lost 20% of my team, some really good players too'Tesla management told employees Monday that the recent layoffs — which gutted some departments by 20% and even hit high performers — were largely due to poor financial performance, a source familiar with the matter told TechCrunch.
Its margins, however, took a hit after Tesla repeatedly slashed prices in a bid to drum up sales and undercut the competition.
High performers also cutMany of the laid-off employees were high performers, according to two sources who spoke to TechCrunch on condition of anonymity.
In 2022, he told employees that he wanted a “clean robotaxi” with no steering wheel or pedals.
Patel told TechCrunch he decided Sunday evening to leave Tesla because of “[b]ig overall changes” at the company.
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Tesla is laying off thousands of employees as it tries to simultaneously cut costs and boost productivity, according to an internal email sent to staff by CEO Elon Musk, Electrek and Bloomberg News reported.
The electric automaker is cutting “more than 10%” of its global headcount, Musk said in the email.
Tesla finished 2023 with over 140,000 employees, meaning the cuts could impact more than 14,000 people.
The company has warned investors that sales growth could be “notably lower” in 2024 than its stated goal of 50% growth each year.
This will enable us to be lean, innovative and hungry for the next growth phase cycle,” Musk wrote.
Tesla drops prices, Meta confirms Llama 3 release, and Apple allows emulators in the App StoreHeya, folks, welcome to Week in Review (WiR), TechCrunch’s regular newsletter that recaps the past few days in tech.
Google’s annual enterprise-focused dev conference, Google Cloud Next, dominated the headlines — and we had plenty of coverage from the event.
Lorenzo wrote about how hackers stole over ~340,000 Social Security numbers from government consulting firm Greylock McKinnon Associates (GMA).
Elsewhere, Sarah had the story on Spotify’s personalized AI playlists, which lets users create a playlist based on written prompts.
Emulators in the store: Apple updated its App Store rules to globally allow emulators for retro console games an option for downloading titles.
Tesla has slashed the price of its Full Self-Driving (FSD) software subscription to $99 per month, down from $199 per month, as the electric vehicle maker aims to boost adoption of its advanced driver assistance system ahead of first-quarter earnings.
The price cut comes a couple of weeks after Tesla launched a free one-month trial of FSD for every customer in the U.S. with a compatible Tesla.
The FSD price cut comes the same week that Tesla released more tweaks to its latest V12 version of the software to certain users.
More drivers with FSD doesn’t only mean more money for Tesla.
Tesla might also be angling for more training data so it can meet CEO Elon Musk’s promise to unveil a Tesla robotaxi in August.
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The Apple falls far from the car: Apple, after packing in its electric car project, let go of 600 staff who were reportedly working on the project.
I’d pay good money to see the prototypes …Apple, after packing in its electric car project, let go of 600 staff who were reportedly working on the project.
Elon Musk’s decision to green light a robotaxi over an affordable EV might cost the company its lead.
Last week, Musk reportedly canned the effort in favor of a robotaxi, the sort of pie-in-the-sky project that defined his first decade at the helm.
Tesla was reportedly on the cusp of building a $25,000 EV.
Given flagging sales of the company’s existing product line, it would have been a welcome shot in the arm.
It also would have given the company a product to hold its ground against a predicted onslaught of inexpensive Chinese EVs.
TechCrunch Mobility: Apple layoffs, an EV price reckoning and another Tesla robotaxi promise Plus, more Fisker problems and a Waymo-Uber Eats tie-upWelcome back to TechCrunch Mobility — your central hub for news and insights on the future of transportation.
The average price of an EV in 2023 was $61,702, while all other vehicles stood at $47,450.
This downward pressure has forced automakers like Ford to delay future EV launches and put more resources toward hybrids.
Even Tesla, a bellwether in the EV world, fell well below analysts’ expectations with deliveries down 20% from Q4 2023.
What vehicles — including the two-wheeled variety — are you interested in reading about?
