Rumour of 10% job cut is only the latest in a series of bad news for Tesla since losing #1 spot to BYD end of 2023. Even the job cut doesn’t seem to help with the stock price and it fell another 5.5% or so.
Tesla boasted Gigafactory being the “most efficient”, but having to reduce workforce by 10% can point to deeper problem. It’s no longer just about supply/production, but demand, including second hand market demand. “Early” adopters of EV have all had fun with Tesla, Model 3 $40k or so range certainly helped with new car demands. Used car market is an integral part of the automotive industry, it’s not just about how many new ones you can churn out efficiently. But how to do keep the car on road for 12.5 years and still keeping your users happy. As this is broadly speaking still the first generation (or cycle) of Tesla, it will be a new challenge to see if they can handle end of cycle vehicles professionally. Is it harder to fix a problem or just to innovate/manufacture your way out?
(I am avoiding talking about cybertruck, which seems to have another set of problems, “is Tesla no longer cool? Or even practical? Just for Elon Marketing?”)
https://english.news.cn/20230601/5a20cc746e774eed939f5eb3cd41e2fe/c.html
https://edition.cnn.com/2023/06/02/tech/elon-musk-tesla-leaves-china-intl-hnk/index.html
https://www.wired.com/story/tesla-cybertruck-success-failure/
https://www.forbes.com/sites/brookecrothers/2024/02/04/hard-lesson-as-used-electric-vehicle-prices-crash-tesla-model-y-model-3-and-chevy-bolt-at-carmax/
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