Tesla's getting rid of every 14-th employee

21 January 2019

Elon Musk has published a letter on the reduction of the 7% of workers Tesla

Elon Musk sent out within the company Tesla Inc. and published on its official website a letter about reducing 7% of its workforce.
The number of employees will decrease by 3 thousand currently working in the company 45 thousand we will Remind that the previous cycle of layoffs took place last June. In this not-too-optimistic news, the shares of Tesla Inc. fell 8%.
In a letter to the head of Tesla Inc. Elon Musk, the reduction arguments in the following way: "We all experienced a challenging year in the company's history. At the same time, thanks to your efforts it was the most successful year in company history: we sold one block is almost the same car number for all of 2017 and 2018 for the entire year, almost as many as in all previous years of operation of Tesla combined! Model 3 was the most popular premium model in the United States. It is, indeed, wonderful, few people believed a few years ago.
In the third quarter of 2018, we received a 4% profit. This is the first profitable quarter in 15 years. According to preliminary results of the 4th quarter, we also made a profit, but it is smaller than for the previous quarter...
(Further in the text it is reported that government incentives for buyers of electric vehicles will shrink and completely go to the end of 2019, so you need to produce cheaper versions of electric vehicles)
... There are many other companies that offer the best balance of "work-life" because they larger size and more Mature, or work on less competitive markets. To offer more "green" products, you need to make great efforts and be creative, but we do it for the sake of our common future.
We have no choice but to reduce staff by approximately 7% (last year the number of employees increased by 30%, which was more than we can afford). We still need to do to be a sustainable company. But we have no other choice.
I am grateful to you for your contribution to Tesla. Without you none of this would have happened.
Thank you for everything.
Musk"

When you consider that in the last year from Tesla Inc. One way or another (i.e. with scandal or without it) left a few key top managers, including chief engineer, chief accountant, chief of staff, Director for logistics, the personnel issues in the company is still the Achilles heel. Yes, and the overall situation of Tesla Inc. remains highly precarious, despite the obvious market successes in the growth of sales volumes and market share even against conventional vehicles (ICE). It is also characteristic that Elon Musk has already called the market of battery electric vehicles (BEV) difficult due to high competition, while the real competition here is really just beginning. After all, in 2019, not to mention the 2020-2021 years in the U.S. and world markets will be a lot of very serious competitors for the most well-known brands, not to mention a number of the startups from China that will fill every market segment, including the segment of Model 3, and the segment of compact electrocreaser, where Tesla is only going to produce the Model Y in the framework of the investment package of $5 billion (the same amount will be invested in Chinese factory Tesla Gigafactory 3) that, however, just minuscule in the background, for example, Volkswagen Group, which intends to invest in 2025 $34 billion only in electric vehicles and another $57 billion in battery technology (a total of $91 billion!). That the launch of the cheapest, and thus the mass version of Model 3 (manufactured, however, at the limit or even beyond profitability) for Tesla Inc. – the question of real survival, which is far from guaranteed in the light coming into the fight on the BEV market real OEM giants.
P. S. According to teslarati.com company Tesla Inc. needs to generate a profit for the fourth quarter and for the full 2018, as she managed to complete another record quarter with record levels of production and deliveries of its best-selling Model 3. However, formally on the financial results of the 2018 Tesla Inc. will be announced only after the market closes on 30 January 2019.

The graph shows that the electric car Tesla Model 3 has become in 2018 the main driver rosta the whole segment of the PEV in the US
 during the fourth quarter of 2018 Tesla has produced a total of 86 555 units of electric vehicles, including 61 394 units of Model 3 and total 25 161 units of Model S and X, which is an increase of 8% compared with the previous record high deliveries in the third quarter. Deliveries of Tesla in the last quarter of 2018 grew by 8% compared to the third quarter of 2018, amounting to a total of 90 700 electric vehicles, including 63 150 units of Model 3, 13 500 units of the Model S and Model X. 14 050 By the end of the fourth quarter of 1010 units of Model 3 and 1897 units of Model S and X were on their way to customers..