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Tesla factory rendering

Tesla has announced layoffs of “more than 10%” of its global workforce in an internal company-wide email. We exclusively reported yesterday that Tesla was prepping a massive layoff.

For the last few months, it has looked like Tesla might be preparing for a round of layoffs. Tesla told managers to identify critical team members, and paused some stock rewards while canceling some employees’ annual reviews. It also reduced production at Gigafactory Shanghai.

Then, over the weekend, we heard rumors that these layoffs were about to happen, which came to us from multiple independent sources, as we reported on yesterday. The rumors indicated that layoffs could be as high as 20%, and in addition we heard that Tesla would shorten Cybertruck production shifts at Gigafactory Texas (despite CEO Elon Musk’s recent insistence that Cybertruck is currently production constrained).

Now those rumors have been confirmed – though with a lower number – in a company-wide email sent by Musk, which leaked soon after it was sent. The full text of the email is below:

Over the years, we have grown rapidly with multiple factories scaling around the globe. With this rapid growth there has been duplication of roles and job functions in certain areas. 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 reductions and increasing productivity. 

As part of this effort, we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally. There is nothing I hate more, but it must be done. This will enable us to be lean, innovative and hungry for the next growth phase cycle.

I would like to thank everyone who is departing Tesla for their hard work over the years. I’m deeply grateful for your many contributions to our mission and we wish you well in your future opportunities. It is very difficult to say goodbye.

For those remaining, I would like to thank you in advance for the difficult job that remains ahead. We are developing some of the most revolutionary technologies in auto, energy and artificial intelligence. As we prepare the company for the next phase of growth, your resolve will make a huge difference in getting us there.

Thanks,
Elon

Additionally there are reports that some employees have already been locked out of system access.

While we don’t have an exact percentage, “more than 10%” means at least 14,000 employees will be laid off, as Tesla’s employee headcount is somewhere on the order of 140,000 total employees (Notably, Tesla’s headcount has not experienced as much “rapid growth” in recent years as it has in the past, making that line of the email ring somewhat hollow).

And we don’t know which specific teams will be most or least affected by Tesla’s layoffs, but two well-known Tesla executives are now missing the “Tesla-affiliated” badge on twitter – Drew Baglino and Rohan Patel.

Baglino is still listed as Senior VP of Powertrain and Energy on Tesla’s website, and Patel is Tesla’s Policy chair who has also served as an impromptu Tesla PR arm on twitter, commenting on news in the place of Tesla’s still incomprehensibly-nonexistent PR department.

While this may not mean anything, the badge does still exist and is shown on Franz von Holzhausen and Martin Viecha‘s profiles, so it is conspicuous that it is missing from the aforementioned executives.

The news follows a bad quarterly delivery report in which Tesla significantly missed delivery estimates, and had a rare year-over-year reduction in sales. While Tesla does not break out sales by geographical region, the main dip seems to have come from China, where Chinese EV makers are ramping quickly both in the domestic and export market.

Tesla will deliver its quarterly profits report next Tuesday, April 23. Analysts estimate that Tesla will still turn a profit of around 50 cents a share, down from 85 cents a share in Q1 2023.

In previous quarters, Tesla has guided for a “pause” inbetween growth phases, expecting that sales growth would be more modest until the release of next-gen vehicles like the ~$25,000 Model 2 (though Reuters recently reported that Musk wants to shift Tesla’s focus to a robotaxi model, which Musk denied just hours before announcing the robotaxi unveiling event).

Tesla’s layoffs come at a time when many other companies in the tech industry are laying off staff, in an apparent game of follow-the-leader while industry profits are still high.

Electrek’s Take

One issue I’ve always had with Tesla is that, if anything, it feels like headcount in the company is too low, not too high. There are so many issues that seem to fall through the cracks (both on a high and low level – Tesla owners, have you ever had trouble getting in touch with someone in service?), and I think the reason for this is because Tesla employees are often overworked. This leads to burnout and turnover, a lack of institutional memory, and a lack of ownership for certain problems that don’t get solved.

Tesla owes a lot of its success to its “startup mentality,” where it’s all hands on deck to grow the company that is shaking up a couple of the largest entire sectors on earth – automotive and energy. The fact that it has shaken up these sectors so successfully is proof that this approach has been effective.

And that helps in recruiting as well – there are a lot of jobs that claim they are changing the world, but Tesla can really claim that it legitimately is on the vanguard of the changing transportation industry. That’s a great way to recruit the best and brightest, and as a result, the company hasn’t had to worry much about losing talent since it has such a recruitment advantage and can take its pick of the brightest minds out there (though that recruitment advantage could be changing, given Musk’s increasingly distasteful behavior).

However, Tesla is 20 years old now. It’s an enormous and established company. It needs to mature and have more established processes, less turnover, and more security for its employees. These sorts of things help reduce errors and increase morale.

While these layoffs are a reaction to a reduction in sales (but not a loss of money if analysts are to be believed – Tesla is likely still profitable, though we’ll hear more next Tuesday), they can’t be helping with morale.

Remaining employees will wake up to an email from a CEO who is increasingly absent as he spends all of his time addicted to an app he wasted $44 billion on (yet demands more stock while firing 10% of the company), see their already-large workloads get larger, and wonder if the feeling of changing the world is really worth all these newly-apparent downsides. Maybe they’ll wonder if getting poached by the new tech buzzword wouldn’t be so bad.

Which is a shame, because we do need Tesla to keep pushing things forward, and to keep attracting the best and brightest. While Pandora’s box is open and EVs are here to stay at this point, regardless Tesla’s ups and comparatively-rare downs, the rest of the industry is still trying hard to pump the brakes on the transition, even if it means America will be less competitive if they get their way.

Tesla is one of the few entities that is large enough and committed enough to dragging those timelines forward, whether the rest of the industry likes it or not. We need a healthy Tesla, and for that, we need good employee morale.

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Get Blix’s Ultra e-bike with free accessories from $1,399, Anker PowerCore Reserve Power Station $110, and more

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April 29, 2024

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Get Blix's Ultra e-bike with free accessories from ,399, Anker PowerCore Reserve Power Station 0, and more

Kicking off this week’s Green Deals is a new Spring Savings sale from Blix Bikes that is taking up to $700 off its e-bike models and also giving you up to $465 in free add-on accessories, with the Ultra Fat-Tire All-Terrain e-bike hitting a new $1,399 low. It is joined by the return of the Anker PowerCore Reserve 60,000mAh Power Station to $110, as well as the Bosch Tronic 4000 6.5kW Electric Tankless Water Heater at $158. Plus all of the other green deals that have dropped today or are still hanging on from last week.

Head below for other New Green Deals we’ve found today and, of course, Electrek’s best EV buying and leasing deals. Also, check out the new Electrek Tesla Shop for the best deals on Tesla accessories.

Blix Ultra Fat-Tire All-Terrain e-bike hits new $1,399 low with $328 in free accessories

Blix Bikes has an ongoing Amazing Spring Savings sale that is taking up to $700 off its e-bikes and also including up to $500 in free add-on accessories while supplies last. One of the notable standouts is Blix’s Ultra Fat-Tire All-Terrain e-bike for $1,399 shipped, with $328 in free accessories along with your purchase. Down from its $2,099 price tag, today’s deal gives you back a combined $1,028 in savings and lands at a new all-time low, beating out Black Friday prices. Along with the e-bike you’ll also be receiving your free accessories package that includes both a front and rear rack, a cushion for the rear rack, and passenger foot pegs for the rear as well. Blix also offers an additional way to save by using the promo code RIDETOGETHER for $200 off when purchasing two e-bikes together.

The Blix Ultra e-bike is equipped with a 750W geared rear hub motor and your choice between one or two 48V batteries that pushes this e-bike up to max speeds of 20 to 28 MPH and travels a range of 40-80 miles, depending on your choice of battery setup. It offers five levels of pedal-assist with a 12-magnet cadence sensor, and a full digital display that relays real-time information such as battery level, odometer, speedometer, travel distance, pedal assist settings, and also supports Bluetooth connectivity to the Blix app for more comprehensive performance data. It also comes stocked with an integrated LED headlight and a pair of 26-inch fat tires for a smoother ride. Plus, with this deal you’ll also be getting the rear rack that can hold cargo and passengers alike with the added foot pegs should you be bringing another person along with you.

Anker PowerCore Reserve 60,000mAh Power Station returns to $110

The official Anker Amazon storefront is offering its PowerCore Reserve 60,000mAh Power Station for $109.99 shipped, after clipping the on-page $40 off coupon. Recently fetching $150, with an original $170 MSRP, this device rode its MSRP throughout 2023, with only a few discounts ever occurring – the biggest of which dropped costs to a $119 low. In the new year we saw a drop down to its new list price as the company switched from LiFePO4 batteries to typical models, followed by a drop in price to its new $105 low at the start of last month. Today’s deal comes in as a repeat 27% markdown off the going rate that lands at the second-lowest price we have tracked.

This power station has a 60,000mAh (192Wh) capacity that is tailored for personal use throughout your days rather than powering your camping sites. It sports a compact design of 4.59 inches by 4.59 inches by 8.17 inches and only weighs 5 pounds, making it easy to store and carry. You can even connect it to a solar panel for solar charging on-the-go, taking just 4 hours with a 60W input. It features a built-in retractable light with two brightness modes alongside an S.O.S. button to provide emergency lighting for safety during power outages or other emergency situations. You’ll also get four output ports to cover your personal devices: two USB-As and two USB-Cs. And for protection, you can even get a custom co2CREA Hard Case for $33.

Bosch Tronic 4000 6.5kW Electric Tankless Water Heater now $158

Amazon is offering the Bosch Thermotechnology Tronic 4000 6.5kW Electric Tankless Water Heater for $158.40 shipped. Down from $250, it spent the first half of 2023 keeping between its MSRP and $200. It wasn’t until Labor Day sales that we saw it drop further to its former $160 low, which we didn’t see beaten until March when its fell to the new $154 low. Today’s deal comes in as a 37% markdown off the going rate that gives you a solid $92 in savings and returns costs to the second-lowest price we have tracked. This 6.5kW under-sink tankless water heater is designed to provide an endless supply of instantaneous hot water to one or more commercial/residential sinks. It can be installed in a 360 degree orientation, with its 13-inch by 8.5-inch by 4.5-inch size making it easy to fit in tight under-counter spaces, and its low 0.55 GPM activation flow rate works perfectly for commercial low-flow faucets. It boasts a 96% thermal efficiency rate with no standby heat loss, saving you time, water, and money.

Spring e-bike deals!

Hover-1 Instinct e-bike standing on kickstand with NYC skyline in background, within post for Blix Ultra Fat-Tire All-Terrain e-bike

Other new Green Deals landing this week

The savings this week are also continuing to a collection of other markdowns. To the same tune as the offers above, these all help you take a more energy-conscious approach to your routine. Winter means you can lock in even better off-season price cuts on electric tools for the lawn while saving on EVs and tons of other gear.

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California now has 1 EV fast charging station for every 5 gas stations

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April 29, 2024

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California now has 1 EV fast charging station for every 5 gas stations

California supercharger

Governor Gavin Newsom (D-CA) announced on Saturday that there is now one EV fast charging station for every five gas stations in California.

California has led the US in the number of EVs and EV charging stations every year since 2016, according to the US Energy Information Administration in December.

According to the governor’s office, 105,000 public or shared private EV chargers have been installed throughout California, on top of over 500,000 home EV chargers. Newsom flagged this stat in a tweet when he also highlighted that Tesla Superchargers are now open to non-Tesla EVs:

There are over 10,000 public DC fast chargers in California.

The number of gas stations vs. EV charging stations is not a like-for-like comparison because fueling up with gas is faster than DC fast charging… so far. But EVs can charge at home, meaning that DC fast chargers are used less.

In February, California approved a $1.9 billion plan to deploy 40,000 more public EV chargers statewide – and that’s in addition to the $1.8 billion it’s already invested in EV charging infrastructure.

More than 1.84 million EVs have been sold in California to date, and 34% of new ZEVs sold in the US are sold in California, according to the Veloz EV Market Report. The state ranks fourth in EV sales behind China, the US, and Germany.

Read more: The Las Vegas–LA electric high-speed rail line just broke ground

To limit power outages and make your home more resilient, consider going solar with a battery storage system. In order to find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and you share your phone number with them.

Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. – ad*

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Smartphone builder Xiaomi rolls 10,000 units of its flagship SU7 off assembly line in just 32 days

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7 hours ago

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April 29, 2024

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Smartphone builder Xiaomi rolls 10,000 units of its flagship SU7 off assembly line in just 32 days

Xiaomi SU7

Just over a month after launching its first-ever BEV, smartphone developer, Xiaomi is touting some big production numbers for the SU7. Better yet, such output supports encouraging orders to date as the Chinese tech company is off to a hot start in its newly entered vehicle manufacturing segment.

As a Chinese electronics company specializing in smartphones, we never covered Xiaomi here at Electrek. Not until the company announced plans for a new EV arm called Xiaomi Automotive in March 2021.

Since then, we’ve followed the tech company closely to see if it could do something its rival Apple has yet to do… deliver its own branded BEV. We got our first glimpse of Xiaomi’s first model – the SU7 in November 2023, and a month later, it officially launched the BEV as a challenger to Porsche and, of course, Tesla.

At the time, we shared that Xiaomi believed it could entice would-be buyers from its existing customer base of 20 million smartphone users in China by offering a holistic system between the SU7 and other Xiaomi devices as a selling point.

It was correct.

The BEV received over 50,000 orders in the first 27 minutes of going on sale, creating a waitlist of up to seven months. This led Xiaomi to rethink its production strategy and try to crank out more SU7s than originally planned to keep up with demand. Although it is new to EVs, Xiaomi appears to be wielding its manufacturing expertise, and its assembly lines are humming in China, just one month in.

Xiaomi SU7
Source: Xiaomi Automobile/Weibo

Xiaomi SU7 orders top 75,000 as production ramps up

Per a Weibo post from Xiaomi Automobile today, orders for the SU7 had reached 75,723 units in the first 28 days since its launch in China. To keep up with this growing order book, Xiaomi is ramping up BEV production with hopes of delivering 100,000 SU7 EVs this year.

It is well on its way as the tech company turned automaker is already celebrating its 10,000th build, just 32 days after the SU7 launch. Of those builds, 5,781 SU7s have already been delivered in China, although the company already hinted at plans for expansion into new markets:

We believe that one day, there will be Xiaomi cars riding on every road around the world!

The SU7 originally launched in three separate variants: Standard, Pro, and Max – priced at RMB 215,900 ($29,850), RMB 245,900 ($34,000), and RMB 299,900 ($41,450), respectively. Last week, Xiaomi founder, chairman, and CEO Lei Jun said the company is targeting 10,000 SU7 deliveries in June, which is more evidence of its continued ramp-up.

This is an automaker to keep an eye on; it’s an impressive start so far.

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