Tesla to lay off 9% of its workforce.

Messages
6,748
Location
Lake Havasu City, Arizona
"Given that Tesla has never made an annual profit in the almost 15 years since we have existed, profit is obviously not what motivates us." I would be interested to hear what is long term business model is. Considering the fact he obviously isn't interested in profit?
 
Messages
1,330
Location
ZFW
Originally Posted By: billt460
"Given that Tesla has never made an annual profit in the almost 15 years since we have existed, profit is obviously not what motivates us." I would be interested to hear what is long term business model is. Considering the fact he obviously isn't interested in profit?
Profit's not what is motivating this... staying afloat past this calendar year is the motivation. I'm not a Tesla fan boy and honestly don't think I'd ever own a full electric vehicle unless I didn't have any other choices, but I have been pulling for them to do well. At this point though, it just feels like if the Model 3 fails to meet it's lofty expectations (sales, production, etc) then Tesla has nothing left to offer their investors.
 
Messages
6,748
Location
Lake Havasu City, Arizona
Originally Posted By: JustN89
At this point though, it just feels like if the Model 3 fails to meet it's lofty expectations (sales, production, etc) then Tesla has nothing left to offer their investors.
I hate to see ANY American business fail. But the fact is if they, (Tesla), haven't turned a profit in 15 years, it's doubtful they're ever going to. Electric cars, especially the really nice models that Tesla sells, are much too expensive for what they offer. Namely very limited range. Coupled with too much downtime for recharging. Private business has got to be profitable in order to survive. Space-X is in much the same boat. They have incredible rockets that can do fantastic things. But if they can't do these things at some level of profitability, they will not survive. No business can run in the red forever. Regardless of how big of a dog and pony show they can put on with their products.
 
Messages
1,697
Location
British Columbia, Canada
I just got back from a trip to Norway. Tesla S models are quite common there. And (strangely for a company that doesn't use a dealership system) I saw 2 Tesla dealerships. Teslas are very expensive there but have other advantages - free charging, free parking, possibly avoidance of highway tolls, and a few others I can't recall. As high end cars are quite common there anyway, gasoline is very expensive, parking is expensive and road tolls are a regular feature, they might make sense.
 
Messages
15,995
Location
Silicon Valley
Originally Posted By: Kestas
How will they choose who gets laid off?
That's easy. In our industry there's a thing called Stack Ranking. Your managers or directors will rank the people they manage, on either a price performance ratio, or just who is delivering result better, or who they don't get along with.
 
Messages
15,995
Location
Silicon Valley
Originally Posted By: billt460
"Given that Tesla has never made an annual profit in the almost 15 years since we have existed, profit is obviously not what motivates us." I would be interested to hear what is long term business model is. Considering the fact he obviously isn't interested in profit?
Most of these unicorn companies are there to grow, and as long as they are growing to justify the "valuation" they are asking for, VC investors will fund another round, or some investors will buy their stocks. The problem is sooner or later they have to deliver result, and when they don't, the only way forward would be a stock valuation crash or a white knight (i.e. Tencent recently) has to show up to pump more money in there. I think Tesla would do OK in the long term as it is getting close to too big to fail in the battery market. They are a battery company also happen to build cars. In the short term however, their stock can be for a roller coaster ride.
 
Messages
734
Location
Under the hood
Originally Posted By: pandus13
Now, would Tesla problems reflect on the SpaceX side?
SpaceX is a separate company and privately owned. It has capable management (with a proper COO, unlike Tesla) and doesn't have to answer to anyone expect its private shareholders. Tesla's problems could affect it indirectly, if they would prevent Musk from being able to plow more of his personal wealth into SpaceX, but there would probably be other investors to take up the slack, and Musk's controlling interest in the company is actually worth more than his Tesla holdings as it stands. If Tesla were to go under, it would affect Musk personally, but not SpaceX directly.
 

Y_K

Messages
2,750
Location
WA (USA)
Agree on COO part, the man should have hired a real COO for Tesla 15 years ago, instead he fancies himself capable doing anything by micromanaging
 
Messages
3,270
Location
Northern Ontario, Canada
Originally Posted By: ecotourist
I just got back from a trip to Norway. Tesla S models are quite common there. And (strangely for a company that doesn't use a dealership system) I saw 2 Tesla dealerships. Teslas are very expensive there but have other advantages - free charging, free parking, possibly avoidance of highway tolls, and a few others I can't recall. As high end cars are quite common there anyway, gasoline is very expensive, parking is expensive and road tolls are a regular feature, they might make sense.
"free charging, free parking, possibly avoidance of highway tolls" The "free ride" will change as soon as everyone not on the "free ride" gets tired of paying for it. No matter where this is Norway, North America, etc.
 
Messages
3,899
Location
Canada
Originally Posted By: billt460
haven't turned a profit in 15 years, it's doubtful they're ever going to.
When Hyundai started offering Korean cars in N. America in the mid 80's, nobody thought they'd make it either. Fast forward 20 years and they are gaining market share over their Japanese and American rivals. The world wants something different, new and fresh (I don't, but I'm not in the majority) and Tesla is willing to offer it. Only a matter of time until these alternate fuel vehicles become the norm.
 
Messages
4,422
Location
Los Gatos, CA
Tesla offered free charging on the Model S for life. Does not apply to the Model 3. Model S Free Charging Electric cars and/or fuel cell are the future. Here in Silicon Valley Teslas, Bolts, Leafs and the others sell like hotcakes. My company has perhaps 50 charging stations that are subsidized. Something like 40 cents per hour and you get a text when charged. You need to move your car for the next guy.
 
Last edited:
Messages
588
Location
Connecticut
Originally Posted By: Lolvoguy
Originally Posted By: billt460
haven't turned a profit in 15 years, it's doubtful they're ever going to.
When Hyundai started offering Korean cars in N. America in the mid 80's, nobody thought they'd make it either. Fast forward 20 years and they are gaining market share over their Japanese and American rivals. The world wants something different, new and fresh (I don't, but I'm not in the majority) and Tesla is willing to offer it. Only a matter of time until these alternate fuel vehicles become the norm.
Matter of time, but the question is how much time. Five years, or fifty years? Back in 2008, truck and SUV sales tanked, and fuel economy was the big push. Fast forward ten years and gas is cheap and few people can justify the trade offs of an electric vehicle, and truck sales are so strong that companies are stopping the sale of their car models, like Ford Fusion and Taurus, Chevy Impala, Dodge Dart, etc. Traditional internal combustion engines are better than ever and making alternative fuel vehicles a tough sell at the moment.
 
Messages
7,485
Location
S California
It's going to be interesting when these Tesla cars get some miles on them and people go to the dealer for service. ?Without competition I wonder how good or reasonable the prices will be. A Bolt owner might enjoy and advantage here with more dealers and competition for their business.
 
Messages
588
Location
Connecticut
Originally Posted By: JeffKeryk
Tesla offered free charging on the Model S for life. Does not apply to the Model 3. Model S Free Charging Electric cars and/or fuel cell are the future. Here in Silicon Valley Teslas, Bolts, Leafs and the others sell like hotcakes. My company has perhaps 50 charging stations that are subsidized. Something like 40 cents per hour and you get a text when charged. You need to move your car for the next guy.
Don’t take this the wrong way, but the demographic of Silicon Valley does not match that of middle America. Fuel cell has such a huge infrastructure hurdle that it’ll never happen across the whole country. It’s decently strong in Japan, but only because their government is subsidizing it. The free market doesn’t support hydrogen powered cars and we have been hearing that fuel cell is the future for fifteen years and it’s still so niche. EVs only sell to average consumers when they can get subsidized rebates, and now that those rebates are running dry, the sales have too. Gas is cheap, cars are more efficient than ever, and most people don’t see a need to change what already works. The Model S was a great step toward making EVs desirable, but it’s still way too expensive for average buyers, and the Model 3 isn’t as compelling. Consumers are putting their money where their mouth is, and crossovers and trucks are the foreseeable future or else car companies wouldn’t be retooling their production lines to stop building cars and start increasing truck output.
 
Messages
9,373
Location
Canuck living in California
If it's popular in silicone valley it must be the future Lol. Yeah, a place where the rooftop solar is hugeley popular to "save" on electricity, but the houses have about the same amount of insulation as a shack in Cuba.
 
Top