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While Tesla is conducting broader layoffs, Electrek is learning that heads are rolling at Tesla over specific critical projects at Gigafactory Texas.

Tesla announced today that it is laying off over 10% of its workforce. The automaker is again using “hiring inefficiencies due to rapid growth” as the reason for the layoffs.

However, Electrek is learning that Tesla is also using this round of layoffs to clean house on some projects in Austin, Texas.

We previously reported that Tesla’s SVP of Powertrain and Energy Engineering, Drew Baglino, left the company today.

Baglino was leading many engineering projects at Tesla, including the 4680 battery cell production and the cathode factory at Gigafactory Texas in Austin. Those two projects have seen serious delays.

Sources familiar with the matter have told Electrek that Tesla has also let go of Anthony Thurston, Senior Manager of Cathode Materials & Manufacturing at Tesla, who was reporting to Baglino regarding the cathode factory project.

A person familiar with the project described it to Electrek as “a financial black hole.”

Tesla cathode factory from Joe Tegtmeyer‘s drone video

The factory is meant to supply Tesla with processed cathode material for its own battery cell production at Gigafactory Texas.

Elon Musk is reportedly unhappy with the progress at the plant, and heads are rolling. It’s unclear if Baglino was let go or left on his own amid the layoffs. Electrek reached out to Baglino, but we didn’t get a response.

Musk also pushed for other changes at Gigafactory Texas.

We reported earlier today that he shut down a project called NV9 to build a next-gen cheaper electric vehicle at the plant. Instead, Musk asked for all resources to go into the Robotaxi program and, specifically, a new data center to be built in an ongoing expansion at the factory.

Sources familiar with the matter told Electrek that the project is behind schedule. Musk is accelerating the project’s timeline to be ready to turn on the data center by August 20th, but this is what it looks like right now.

Tesla Gigafactory Texas south expansion from Airwave Dynamics‘ drone video

The timeline was already ambitious, but the CEO has accelerated it amid some of the toughest months for construction in Austin. The project is expected to experience rain and wind delays on top of the logistic challenges of supplying the computing and power electronic hardware to build the data center.

Several people involved in the project were also let go, according to sources familiar with the matter, including Amir Mirshahi, director of infrastructure at Tesla Gigafactory Texas.

Individuals involved with the project referred to it as ‘Dojo,’ which is what Tesla calls its own supercomputer program, but two people familiar with this data center project said that it would use NVIDIA hardware.

We previously reported that Tesla let go of its Dojo leadership in December 2023.

Earlier this year, Tesla announced that it is building a $500 million Dojo supercomputer cluster in New York.

Tesla aims to use the new computing power from this New York project and this Gigafactory Texas project to train its AI for self-driving. Tesla plans to unveil its Robotaxi on August 8th.

Electrek’s Take

Tesla and Elon are pushing the narrative that the layoffs are due to “hiring inefficiencies due to rapid growth”, but there’s definitely more to it.

This is leading some Tesla fans to claim that “Tesla is just trimming the fat” and “firing the bottom 10% of performers”, but again, there’s more to it.

It looks like Elon is unhappy with some of Tesla’s programs and cleaning house, for better or worse. The layoffs sort of hide the programs being killed and the resources moving around or not needed anymore.

I want to be clear that I disagree with the characterization that people being let go at Tesla this week are not good at their jobs. It might be the case in some cases, but there can be a lot of factors that result in a program not working, and Elon himself can be a factor at times. He is known to move the goal post.

Tesla’s needs are changing because Elon is changing his mind on things.

In short, Elon is putting all of Tesla’s eggs in the same basket and that basket is called self-driving.

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Tesla will pause part of new Model Y production for 3 weeks for upgrades, report says

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Tesla will pause part of new Model Y production for 3 weeks for upgrades, report says

A new report states that Tesla will pause part of new Model Y production at Gigafactory Shanghai for 3 weeks to upgrade the lines.

The shutdown will extend beyond the regular Chinese New Year.

The Chinese New Year is technically 2 weeks long, but the official holiday lasts a week, during which significant parts of the country’s industries shut down.

That includes the auto industry and Tesla, but it looks like the American automaker plans to do things a bit differently this year after having just started production of its updated Model Y at Gigafactory Shanghai.

According to a new report from Bloomberg, Tesla plans to shut down part of its new Model Y production lines from around January 22 to February 14.

In comparison, Tesla only plans to shut down production of the Model 3, the only other vehicle produced at the plant, from January 26 to February 3.

Tesla only recently started production of the updated version of its best-selling electric SUV. The report states that the automaker will take advantage of this extended Lunar New Year shutdown to upgrade parts of the production lines in order to streamline and ramp up production capacity.

The automaker delivered about 480,000 Model Ys in China in 2024 – up about 5% year-over-year.

Reports claimed that Tesla received over 50,000 orders for the updated vehicle version in the first 24 hours of the unveiling.

Electrek’s Take

It makes sense. Over the last few weeks, Tesla has basically been running a pilot of production of the upgraded version, which is entirely different from the previous version, but there are enough differences that new parts and processes can create bottlenecks.

Tesla likely found ways to optimize production during that time and now will implement it during this extended shutdown.

We will try to keep track of the Model Y production and rollout in China as any delay or production issues can be extremely impactful, considering the Model Y is the world’s best-selling EV and China is the biggest EV market.

Any kind of issue there can be extremely impactful on Tesla and the broader EV market.

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Honda is bringing back the Acura RSX in 2025 as an EV built in the US

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Honda is bringing back the Acura RSX in 2025 as an EV built in the US

American Honda shared a business outlook for 2025 during a recent briefing with the media. In terms of electrification, the next 12 months for Honda will be much of the same: facelifting tried-and-true ICE models like the CR-V and Passport. However, there was one exciting piece of news from Honda on the BEV front—the automaker has confirmed it will begin US production of an Acura RSX EV.

Honda and its premium sub-brand Acura, for that matter, are getting more and more coverage on Electrek’s homepage thanks to the combined efforts in adding new BEV models… although that transition has still been relatively slow compared to other OEMs.

Nevertheless, Honda launched the all-electric Prologue, which has found quick success with US consumers. Shortly thereafter, Acura launched the ZDX, which sits atop the same Ultium platform as Prologue, provided through a partnership with GM.

Honda has since backed out of that partnership—at least the part where GM provides vehicle architecture—and has been developing its own in-house platform that will one day power its new 0 Series lineup of BEVs. These originally debuted at CES 2024 and remerged at this year’s event as prototypes—and now they’re white! They will also feature a new proprietary vehicle OS called ASIMO (more on that below).

While we await the arrival of those Honda BEVs, we can expect to see a new Acura model hit the market first, based on an SUV called the Performance EV Concept, which debuted at Monterey Car Week this past August. At the time, the Acura Design Studio described the concept as “the evolution of Acura’s performance-focused design direction and the brand’s next all-electric model.”

That new production model didn’t have a name yet, but we did learn it would be the first BEV to debut on Honda’s new bespoke platform and the first all-electric model to roll off its assembly lines at the new Honda EV Hub in Marysville, Ohio.

Today, we learned that the Performance EV Concept has evolved into a full-fledged passenger model with a familiar name – the Acura RSX EV.

Acura's-sales-tool-EV
Acura’s Performance EV Concept / Source: Honda
Acura RSX EV
A camouflaged look at the Acura RSX EV prototype / Source: American Honda

Acura brings back the “RSX” nameplate as an EV SUV

During a media briefing earlier this week, American Honda shared its 2025 outlook, led by vice president of sales, Lance Woelfer. This year’s strategy includes the production of its first original BEV in Ohio using domestically and globally sourced parts as a new hybrid model and several ICE vehicles (boo).

Woelfer confirmed that the first bespoke all-electric model coming out of Ohio will be the Acura RSX EV. This move marks the return of a notable nameplate in the Acura lineup that evolved from the original Honda Integra. The Acura RSX was sold in North America from the early- to mid-2000s and still has a decent fanbase, especially amongst fans of the Honda Integra and Japanese Domestic Market (JDM) enthusiasts.

Acura revived the Integra nameplate in 2021 as a Honda Civic-based liftback, and although that model is sharp, it remains combustion, hence why Acura has revived the RSX name as an EV model. Per Mike Langel, assistant vice president, Acura National Sales.

The nameplate pays homage to the Acura RSX with its coupe-like silhouette, but it truly represents a forward-looking approach to fun-to-drive performance. Our second all-electric SUV will solidify our EV credentials even as its ICE stablemates, the all-new ADX, RDX, MDX, TLX and Integra continue to attract new buyers to the Acura brand.

The Acura RSX EV, seen in a unique camo wrap above, looks quite sleek, but I predict Integra and RSX purists may reject this new model out of the gate because it’s undeniably an SUV, not a sporty compact like the vehicle(s) it’s named after. This reminds me of when Ford introduced the Mustang Mach-E, and brand loyalists argued, “That’s not a Mustang.” Just like the Mach-E, the Acura RSX EV represents a new generation of performance models, no matter what you call it.

The new SUV also represents a massive step for Honda and its premium brand, as the Acura RSX EV will be the first model to utilize Honda’s new EV platform and its new ASIMO OS operating system introduced at CES 2025. At the time, Honda said ASIMO will constantly update its in-vehicle software via over-the-air (OTA) updates for both the digital UX and integrated dynamics controls that will allow the automaker to deliver “a personalized ownership experience that will enhance the joy of driving.”

Acura says the RSX EV is slotted to begin development testing in real-world conditions this week ahead of planned production in Ohio later this year. We plan to visit Honda’s EV Hub later this month, so perhaps we can capture some images of where this new SUV will be built or, better yet, look at the prototype up close.

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Toyota funded climate deniers and Fred says Elon fudged the FSD numbers

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Toyota funded climate deniers and Fred says Elon fudged the FSD numbers

On today’s episode of Quick Charge, we look into a new study revealing that Toyota outspends all other automakers when it comes to funding climate change denying politicians and Fred accuses Elon of misrepresenting the data behind Full Self Driving (again).

We’ve also got word that the recently redesigned Tesla Model Y is being built in Giga Berlin, Hyundai’s electrified lineup is leading a record export year for the brand, and a new study says cleantech investments will beat out conventional energy production for the first time in 2025.

Prefer listening to your podcasts? Audio-only versions of Quick Charge are now available on Apple PodcastsSpotifyTuneIn, and our RSS feed for Overcast and other podcast players.

New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news!

Got news? Let us know!
Drop us a line at tips@electrek.co. You can also rate us on Apple Podcasts and Spotify, or recommend us in Overcast to help more people discover the show.

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