Tesla Cat 3000 Jobs Like Musk See Hard & # 39; Road ahead


Alan Musk says he will disperse Tesla's 7%, or more than 3,000 jobs, warning that the "road ahead is very hard" to make electric cars more affordable for the mass market.

The shares fell 7.2% in early US. There. Trading after the Palo Alto, California-based company has managed to out-profit in the last three months of 2018, although narrower than the hard-won third-quarter earnings reported in October. To a blog post on Friday.

Tesla is under pressure to limit spending as it emerges from what Musc called the "most challenging" year in its history. While it succeeded in scaling up its model 3, the company missed analysts' production targets during the fourth quarter, and it had to cut prices to make up for the halving of a US dollar. There. Tax Credit That's Acted As A Buyer & # 39; Incentive. The credit is set to fall again in July before going off entirely at the end of the year.

Model 3 prices

The company increased staff by 30% last year, which is "more than we can support," Musk said in the blog post. It has absorbed some of the cost challenges by initially selling only the highest-priced versions of Model 3, its first car being a massive car. So far, the cheap configuration available from the vehicle, which has a base price of $ 35,000, cost $ 44,000, MUSC said. As production increases over the next few months, the company will need to sell low-cost versions, he said.

"Making in May, we'll need to provide at least the 3 model mid-range model in all markets, as we need to reach more customers who can afford our vehicles," Musk said. "In addition, we need to continue driving to lower priced model 3 variants."

Tesla has about 45,000 employees in 2018, so the 7% cut is about 3,150 jobs lost. The company is also expanding in Europe and China, which will be expensive, said Sven Diermeier, a Frankfurt-based analyst at Independent Research GmbH.

"With rising model 3 sales margins are deteriorating with a poor model mix," said Diemerier. "Compensating for this will be difficult, so work cats are logical."

Tesla fighters

The company will also see a significant increase in competition for electric cars, as traditional manufacturers have rolled out an array of products that will be measured against its peeling lineup. The aim of this year's ECC electric crossover was last year. Audi followed with E-tron and its parent, Volkswagen AG, plans to introduce more than 50 clean battery-powered vehicles by 2025 by the group.

VW to spend $ 800 million to produce e-cars on TESLA's home turf sneeze unwilling new lease Electric car delayed by ghilet's arrest BMW, Audi, Porsche, Tesla-What Electric car is right for you? Tesla shares dropped to $ 322.40 in early US. The stock has changed little in the last year, although it has been pushed dramatically in 2018, as Musk's Crisis Crisis Causes: Warning With Analysts Over Tesla's Money; Smoking Vid in an Interview and Losing Its Role in a Sec Sealing Over Its Tweeted Bike Purchase That Has Never materialized, All While Working Furiously to Ramp Up Production Model 3.

Tesla's overarching challenge is making cars, batteries, and solar products cost-competitive with fossil fuels, Musk says Friday in the blog post.

"While we have made great progress, our products are still too expensive for most people," Musk said. "Sorry for all the numbers, but I want to make sure you know all the facts and figures and understand that the road ahead is very difficult."

Incomend's carmakers are also struggling with the high cost of making electric cars. On top of record investment in new electric machine lanes, high battery costs are crippling margins and buyers worry about charging and driving range largely staying on the fence.

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Gm Will shut down plants with more than 14,000 job cuts, though most of the hourly workers will be offered jobs elsewhere in Ford, killing thousands of jobs in Europe; Morgan Stanley estimated it could reach a total of 25,000 Jaguar Land Rover cutting 4,500 jobs, most of them in the UK's Nissan announced 700 work cuts at its Mississippi plant on Wednesday, Tesla's layoffs marking second-generation workers in a matter of months. In June, Tesla dismissed 9% of its work force, after misjudging how quickly it could ramp up mass production of the model 3 only to go on an aggressive hiring spree shortly after.

The company must now make rapid gains in its manufacturing processes as it increases Model 3's production rate, Musk said.

"Heavy volume and manufacturing design improvements are critical for Tesla to achieve the economies of scale required to produce the standard range (220 miles), standard interior model 3 at $ 35K and still be a viable company," he said. "There is no other way."

© 2019 Bloomberg L.P

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