Tesla profits cut in half as demand falls
www.bbc.com
The EV maker brings forward launch plans for new models as profits drop by more than half.

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.

  • RubberDuck@lemmy.world
    English
    513·
    8 months ago

    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.

    • GiddyGap@lemm.eeEnglish
      271·
      8 months ago

      Other than on price, Tesla is just not on par with premium German brands.

      • givesomefucks@lemmy.worldEnglish
        277·
        8 months ago

        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.

        In the company’s last earnings report in January, Chief Executive Elon Musk warned about the competitiveness of Chinese brands. BYD, China’s largest EV maker, surpassed Tesla in car sales last year.

        "If there are not trade barriers established, they will pretty much demolish most other car companies in the world,” Musk said.

        This year, Manhattan Beach-based Fisker Inc., an electrical vehicle startup, cut 15% of its workforce, had its stock delisted and said it might file for bankruptcy protection. Apple also recently announced an end to its long-held ambitions of making a self-driving EV.

        https://www.latimes.com/world-nation/story/2024-04-19/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

        • Billiam@lemmy.worldEnglish
          23·
          8 months ago

          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 Subaru Xi Jinping!?