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Tesla Announce 7% Job Cuts With Poor Q4 Expected

Tesla Announce Jobs Cuts

Towards the middle of 2018, it appeared that Tesla may have finally been moving in the right direction. Production was up and (heaven forbid!) the company actually reported a profit! It seems, however, that the latter part of 2018 hasn’t been quite as good as the company might have hoped.

In a report via NYPost, with the company expected to announce ‘below expectation’ Q4 figures, Tesla has confirmed that 7% of their workforce will be made redundant.

That’s A Lot Of Jobs

With Tesla production almost entirely based in America, this will result in the loss of around 3,400 jobs. Quite a significant number for a car firm as relatively small as Tesla. Both announcements have, in turn, also seen a (somewhat coincidental) 7% drop in the share price of the company.

The Future!

It is believed that the job losses form part of an overall plan for the company to ‘tighten their belts’ and look towards a 2019 where they actually start getting cars off the production line and onto the driveways of owners. In other words, make money.  With a less-expensive Model 3 design expected to hit the market shortly, this might help.

It does, however, raise the question of if they are struggling to produce the cars, is making people redundant really the right move? In addition, the upcoming expiration of a $7,500 tax credit incentive in the US will undoubtedly play a role in future orders!

What do you think? Are you a fan of Tesla? – Let us know in the comments!

Mike Sanders

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