Tesla's Possible Layoffs: Financial Concerns Amid Growth

Tesla Layoffs

There is fear of possible layoffs in the company led by Elon Musk.

2023 was a very good year for Tesla and the Tesla Model Y was the best-selling car in the world, in Europe and led national markets among electric cars (as happened in Spain). However, this success was due to very aggressive price cutting policies and it could be that this direction takes its toll on the company financially.

Everything indicates that the brand led by Elon Musk would be looking to lighten the load and, as Bloomberg has made public, the firm would have asked its managers which positions are crucial in the operation of the company, which has not taken long to raise rumors. that layoffs may be being considered.

It is well known that Tesla carries out regular monitoring of its employees and that, every six months, it speaks with those responsible for the different areas so that they can rate, from 1 to 5, the performance of each of the employees under their charge. .

However, all the alarms went off when, when the time came to carry out the new evaluation, the brand has canceled many of those interviews to ask directly if the work of each employee is critical to the functioning of the company.

At the moment there have been no consequences derived from this, but internally there is fear over the possibility that layoffs could be made. However, the company’s own website still has open applications for multiple jobs, which makes them two things that contradict each other.

What is clear is that in recent years Tesla has grown considerably. According to Bloomberg data, since 2020 the company has doubled its number of employees to reach the 140,000 it currently has throughout the world. What’s more, the figure grew by 10% in 2023 alone.

As to whether the situation is profitable, it is something about which there is no clear information, although, as Carscoops reports in the words of Vaibhav Taneja, the company’s financial director, the company is looking to cut costs: “It is a constant exercise and we simply have to achieve down to the last penny possible. “We have a strong team that is very focused on this.”

Despite this, the company is still in full growth and investment phase and for this year an investment of no less than 10,000 million dollars is planned.

Analysts expect it to follow this same direction given that the rumors about the arrival of the hypothetical Tesla Model 2, the brand’s affordable electric compact, are increasingly stronger and, if they come true, it should be a stimulus for the entity that would carry its success to new heights.

In fact, Musk himself already hinted at this approach when he noted that Tesla was “between two waves of great growth.” Although he did not specify which ones he was referring to, logic suggests that the first is the one generated by the Tesla Model 3 and Model Y, which represented a considerable leap for the firm; and that the second will be what its affordable model will cause.