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More Tesla layoffs: Elon Musk ‘hard-core about headcount’

Tesla layoffs: Elon Musk ‘hard-core about headcount’
Tesla layoffs: Elon Musk ‘hard-core about headcount’

Tesla Inc (NASDAQ: TSLA) has gutted the company’s Supercharger team. This is despite recent successes in winning over major automakers to adopt Tesla’s connector technology as the North American Charging Standard (NACS).

As reported by The Information, CEO Elon Musk said in a company-wide email: “We need to be absolutely hard core [sic] about headcount and cost reduction.” 

This decision has left many questioning the future of Tesla’s Supercharger network and its impact on the broader electric vehicle (EV) industry.

Tesla layoffs continue

Musk ordered management to deal with employees who “don’t obviously pass the excellent, necessary and trustworthy test” or step down. According to TechCrunch, the entire global charging department was let go, including team lead Will Jameson. 

The latest round of layoffs also includes two senior executives. Director of the company’s supercharger group, Rebecca Tinucci, and head of new products, Daniel Ho was let go. 

Tinucci joined Tesla in 2018 as a senior product manager before becoming technical program manager for strategic projects, followed by senior manager of supercharging in March 2020. She was appointed as director of charging infrastructure in December of that year. 

Ho had been with the company for over 10 years. He served as program manager for the Model S, Model 3, and Model Y. Ho was appointed as director of vehicle programs and new product introduction (NPI) in September 2022. 

Cybertruck layoffs

Locate2u reported on the layoffs when employees at Tesla’s Gigafactory in Texas were told the focus would “shift from Cybertruck production.” The following day, Musk said it was a “difficult decision.”

Tesla has “grown rapidly with multiple factories scaling around the globe,” Musk explained. He urged management to reduce the “duplication of roles and job functions in certain areas.“ 

A screenshot of his email was posted on Reddit, in which he said: “As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reduction and increasing productivity.”

ALSO READ: Tesla recalls Cybertrucks over dangerous flaw

Tesla’s Q1 financials

Tesla’s profits continue to plunge, reporting a 55% drop during the first quarter. During its earnings calls, Musk said layoffs are vital if Tesla is to be “lean, innovative, and hungry.” 

First-quarter performance took a hit, with earnings per share plummeting by 47% to just 45 cents. Quarterly revenue dropped 9% year-over-year to $21.3 billion. The decline is due to lower average selling prices for its vehicles and fewer deliveries.

Tesla also invested around $1 billion in AI infrastructure. This resulted in a negative free cash flow of $2.5 billion. The recent layoffs are expected to save Tesla roughly $1 billion.

NOW READ: Tesla shift amidst profit plunge

About the author

Cheryl has contributed to various international publications, with a fervor for data and technology. She explores the intersection of emerging tech trends with logistics, focusing on how digital innovations are reshaping industries on a global scale. When she's not dissecting the latest developments in AI-driven innovation and digital solutions, Cheryl can be found gaming, kickboxing, or navigating the novel niches of consumer gadgetry.

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