Tesla came into the automotive market with great demand. Upon its entrance into the industry, it immediately gained a reputation for being environmentally sound, powerful and above all…. Luxury.
While it is known to sell luxury automobiles to the wealthier of society, an ultimate goal of the brand is to create an affordable vehicle while obtaining its quality and functionality as an environmentally conscious car.
Tesla had expanded its workforce in 2018 as it produced it’s first lower-priced vehicle. Come late 2018, 9% of Tesla’s staff was let go. In a statement, Tesla CEO Elon Musk claimed that this was something he did not want to do but was necessary towards creating a mid-price sedan while maintaining profit and that it would not be repeated in the future.
Last week an announcement went out from Tesla that another round of layoffs would pursue. An additional 7% of its staff was cut. This came as a shock to many although a few employees saw it coming.
One anonymous employee said that Tesla is creating a pattern of higher mass employees every three months and purging employees every six. While this cannot be proven to be factual, most found the mass layoffs startling. Especially those invested on Wall Street.
Tesla stock fell 4% on Wednesday as investors fear longevity of profit for the company.
Analysts have beliefs that Tesla underestimated production and delivery costs when quoting a sedan at $35,000.
The website currently offers the Model 3 at a purchase price of $45,500.
Do you think this purge was a positive step for Tesla to offset