Achi news desk-
The first quarter and change of 2024 couldn’t be more different from the same time last year for Tesla. In early 2023, it was riding high amid rapid price cuts, effectively outpacing new competitors in sales and leading what was supposed to be a tipping point for electric vehicle adoption. Of course, the pace of growth slowed later this year, but Tesla’s own troubles just kept accelerating — and now the company could be facing job cuts as early as this week.
It starts on Monday’s edition of critical materials, the only roundup of the top auto industry technology stories you need in your life. Also on today’s dance card: the world is facing a shortage of EV technologies, and Mercedes and Volkswagen are facing off against the renewed Auto Workers Union in the South. Let’s get down to it.
30%: Tesla cuts soon, maybe
I’m coming off a long-planned two-week vacation, which was kindly handled by my colleagues at InsideEVs, Rob Stumpf and Sobert Kotori critical materials in my absence Above all, I missed A court Of Tesla news: The possible death of the $25,000 EV, the unveiling of the robotaxi in August, lots more Cybertruck problems, slowing sales and the company’s all-in bet on its so-called Full Self Driving technology.
We don’t really have “slow news days” here.
and today, Electric Scoop brings noise: Citing “several reports” from company employees, EV reports and tech publications may be coming Tesla’s way. “Some are talking about layoffs of up to 20% of the workforce, which means tens of thousands of workers,” writes editor Fred Lambert. “The rumors come after Tesla angered some employees with late performance reviews and price hikes earlier this year.”
The same memorandum was reportedly viewed by me Business Insider As well. Here’s what two- I have written:
The company is eliminating “more than 10%” of its global workforce, according to an internal memo sent by Elon Musk on Sunday, seen by Business Insider. The layoffs came shortly after the automaker released missing shipment numbers.
Musk wrote in an email: “There is nothing I hate more, but it has to be done. It will allow us to be lean, innovative and hungry for the next growth cycle.”
Some Tesla employees lost access to their emails and teams by Monday, two people with knowledge of the matter said.
None of this is terribly surprising; We know Tesla had some rough results in the first quarter, delivering just 386,810 vehicles worldwide despite making nearly 50,000 more than that. And it’s starting to feel like a protest is about to be made at FSD, where providing “full autonomy” is seen as key to the company’s high share price.
Tesla’s first quarter earnings call will take place after the market closes next Tuesday.
If you know anything about the reported cuts at Tesla, are concerned you may be affected or have seen Musk’s memo, please get in touch.
Update at 12:50: According to multiple reports, the layoffs are currently underway at Tesla and target about 10% of its global workforce. to all CNBCMusk’s full memo to staff is below:
Over the years, we have grown rapidly with a large number of factories around the world. With this rapid growth has come duplication of roles and job roles in some areas. As we prepare the company for the next phase of our growth, it is extremely important to look at every aspect of the company to reduce costs and increase productivity.
As part of this effort, we conducted a thorough review of the organization and made the difficult decision to reduce our workforce by more than 10% worldwide. There is nothing I hate more, but it has to be done. This will allow us to be lean, innovative and hungry for the next cycle of growth.
I want to thank everyone who is leaving Tesla for their hard work over the years. I am grateful for your many contributions to our mission and we wish you well in your future opportunities. It’s very hard to say goodbye.
To those who remain, I want to thank you in advance for the hard work that remains ahead of us. We develop some of the most revolutionary technologies in automotive, energy and artificial intelligence. As we prepare the company for the next phase of growth, your decision will make a huge difference in reaching us.
60%: Want job security? Become an EV Tech
People often frame Hertz’s withdrawal from the EV rental game as widespread customer rejection of electric cars. But it was deeper than that: The company took a huge hit in resale prices, a major source of revenue, after all of Tesla’s price cuts, and it struggled with skyrocketing repair costs.
This is partly because the world of auto repair is still largely dominated by the knowledge of internal combustion vehicles. It Bloomberg The story centers on Britain, but see this as a problem everywhere:
A shortage of mechanics trained to handle the most advanced EV repairs is helping drive up repair costs, according to insurance and repair companies such as the AA, which provides roadside assistance across the UK. Add expenses such as long waiting times for spare parts, and the underwriters choose a total of cars with relatively benign damage – premature delivery of electric models to the junk pile.
A seemingly simple accident that damages the battery or the cell containing it “could wipe out the car completely,” said Marco DiStefano, chief executive of the retail division of UK insurer Axa SA. “Ultimately, it raises the price of insurance.”
Fewer than 10% of the UK’s 236,000 car mechanics are qualified to work directly on EV batteries or their cases, according to the Institute of the Automotive Industry, which provides training and certification. While many technicians can perform less demanding tasks, the most challenging repairs require additional training, given the complexity of the circuits and the risk of electric shock.
“The advance goes up quite a bit because you’re running without mistakes really,” AA coach Darren Naughton said during a visit to Birmingham. “It’s instant death in these systems.”
Don’t let “instant death” scare you! The world needs more EV technologies and you can have long-term job security if you make this your path. Expect more coverage of this crucial topic on InsideEVs soon.
90%: UAW targets Volkswagen, Mercedes-Benz in America
Via Etsy: https://www.etsy.com/listing/1650973812/vw-retro-uaw-sticker
Historically, the UAW has had little luck organizing “foreign” automakers in the U.S. It’s also a big reason so much of their production is in the South, where anti-union laws and political forces are much tougher.
But it’s a very different UAW lately, and a very different atmosphere in America. Auto workers have also been left without wage gains despite record profits from the companies they work for, and many of them are understandably fearful about what an electric future will mean for their jobs.
Soon, workers at a Mercedes plant in Alabama and a Volkswagen plant in Tennessee will face new union votes. And these are news to us because they both produce EVs there: EQS SUV and EQE SUV and ID.4, respectively. here car news about the last one:
“Conditions are as comfortable as they’ve been in my lifetime,” UAW President Sean Payne said in an interview. “This is a culmination of many things, but I do think that in the times we are in now, it is clear that the workers are looking for a better way.”
The upcoming election will show whether workers agree that the UAW can provide a better way. Volkswagen workers here are voting this week, and another vote at the Mercedes-Benz plant in Alabama is expected in early May.
Both sites will be a good measuring stick; The UAW has failed twice since 2014 to organize Volkswagen’s Chattanooga workforce, and multiple attempts to unionize the Mercedes-Benz site outside Tuscaloosa, Ala., have not even resulted in a vote.
Payne is confident the UAW can break its losing streak.
“I think we’re going to win a lot,” he said. “Once you see the first domino fall, you’ll see many more followers.”
Many modern labor unions, including the UAW, see reversing decades of membership loss as their number one job, even more vital than improving existing contracts. Hence, the push for growth.
Of course, both ways are already very political:
Union advocates like Meadows say the opposition’s argument boils down to three main issues: the UAW is too cozy with Democrats, unionization could lead to layoffs or closings, and the union is corrupt.
Several signs around the plant tie the UAW to President Joe Biden, whom Payne has recently endorsed, with messages like “Say No to Sleepy Joe.”
The Center for Union Affairs, a nonprofit “supported by foundations, businesses, union members and the general public,” according to its website, launched a campaign with ads and billboards highlighting unfulfilled promises from the Detroit 3 negotiations, the “anti-UAW” – Israel position, and Her “corruption record”, among other things.
“Autoworkers have been burned by self-serving union officials in the past,” said Charlie Bozello, the organization’s director of communications, in a statement. “Our goal is to make sure that workers and the public have access to the full picture of the types of leadership and ideologies that drive the ‘new’ UAW.”
In a statement, Volkswagen officials said the company plans to remain “neutral” in the election; I can’t immediately find statements from Mercedes-Benz, but I’ll update this story when I get one.
100%: Are you still bullish on Tesla?
I’ve said this many times before, but I don’t think you should count Tesla out, ever. Society has a way of hitting back hard when it gets knocked down.
But between the aging lineup, the intensifying competition, the unfulfilled promise of FSD and Musk’s ongoing antics, no amount of optimism should mask the urgency needed to get back on track here.
What are you reading at Tesla during the second quarter, and what needs to be done here? I’d like to see the company remember that it’s, you know, a car company, and announce a small family of new models in the coming years. Instead, Musk’s mind is clearly on racing AI instead and unlocking autonomy with it somehow.
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