In other words, Tesla is being approximately, literally decimated: https://en.wikipedia.org/wiki/Decimation_(Roman_army)
Except that it's not random, noone is being killed, and they are getting severance and stock vesting.
Tesla is laying off ‘about 9%’ of its workforce as it ‘restructures’ the company
111–120 of 396 posts
Re: Tesla is laying off ‘about 9%’ of its workforce as it ‘restructures’ the company
#112Earlier quoted context omitted.
Are they running hot? They're in serious financial trouble and have been unable to meet self-imposed production levels. Now they're laying off thousands of people.
They can't keep up with demand and their sales look like this over time: $4 billion -> $7 billion -> $11.7 billion -> ~$17 billion How is 4x growth in three fiscal years anything other than running hot?
Their losses look like this over time:
$889m -> $675m -> $2b -> ??? (a cool $710m in the 1Q so annualized like you did with revenue would be ~$3b).
They have ~$2.8b in the bank, so that's about a year if things continue like they have been, less if they hit a snag. Which is why Elon is firing people left and right.
Re: Tesla is laying off ‘about 9%’ of its workforce as it ‘restructures’ the company
#113Tesla and SpaceX are businesses and I never understood the public fandom behind them and Elon Musk. 3,500+ people losing their jobs is pretty significant for a leader who touts altruism as one of his top motivators.
Strange statement. Why would a business guy be judged on firing people. Its not like he is running a charity. I like SpaceX because of what they do, not because they 'provide jobs to the community'.
You can't think of a single instance where people have thought poorly of business guys for firing people?
Re: Tesla is laying off ‘about 9%’ of its workforce as it ‘restructures’ the company
#114Earlier quoted context omitted.
>> illegal efforts Yet to be determined by a court. Precision in language is important, no matter how heated you are about a situation.
This itself seems like an imprecise argument. If there are well-known laws against doing something that has gone unpunished so far, is it then legal?
That claims you know what's going on at Tesla, which you don't. So you can't make such a statement.
Re: Tesla is laying off ‘about 9%’ of its workforce as it ‘restructures’ the company
#115Earlier quoted context omitted.
That's not how people typically evaluate companies. The "standard" way to evaluate a company is to take the price of the stock, and divide by the profits. There are some details like "historical PE" vs "forward-looking PE", but that's the basic metric. The PE ratio represents the number of years it'd take for a company to make back the price you paid. And for most people, PE of 15 to 25 (15 years to 25 years of profi…
if you can just invest based on simple metrics like that it would be very easy to make money in the market.
I'm not saying "invest in simple metrics". I'm explaining how a typical evaluation is done. The original poster's evaluation is fundamentally nonsense.
> If you do a quick math let's say they sold 400,000 Tesla (which they haven't yet) at an average of $100,000 each (which is probably lower) its net worth comes around $44B.
This line just doesn't make sense at all. There's no metric I'm aware of that matches this methodology.
Re: Tesla is laying off ‘about 9%’ of its workforce as it ‘restructures’ the company
#116Re: Tesla is laying off ‘about 9%’ of its workforce as it ‘restructures’ the company
#117Somewhere along the way I have come to appreciate that as a society we need to optimize better for psychological, financial and physical wellbeing of people prioritized by proximity: employees, community, humanity. It will definitely slow down innovation. We might go to Mars 20yrs late, no self driving cars for 10 more yrs, walk around the city some more before electric scooter land etc.
Of course it is in conflict with innovations in humanity impacting products like cure for cancer, malaria etc. It would be nice to figure out a solution that provides a good balance.
Re: Tesla is laying off ‘about 9%’ of its workforce as it ‘restructures’ the company
#118Earlier quoted context omitted.
> "This decision he just made is poor and Elon is human just like everyone else" How on earth could you possibly know that? It's entirely possible (likely) that not laying off those 3000 people would endanger the ability of Tesla to continue employing the other 30,000 people. Life (and business) is sometimes messy...
No, the company has been operating in the red forever. He is bowing to the public markets to make the company's life easier. It was never going to die if he kept these employees.
Those same public markets were recently trading at 87-88 cents on the dollar. (See http://markets.businessinsider.com/bonds/tesla_incdl-notes_2... for verification.)
If the markets were assuming that they would recover half of what was owed in bankruptcy, that corresponds to about 1/4 odds of bankruptcy in the next few years. Given that historically markets have been more accurate than any individual commenter, the risk of bankruptcy was quite real. No matter how many Monday morning quarterbacks like you think otherwise.
Re: Tesla is laying off ‘about 9%’ of its workforce as it ‘restructures’ the company
#119Earlier quoted context omitted.
I wasn't even aware they HAD a contract. My local Home Depot has zero mention of any product Tesla makes.
The contract was for 800 Home Depot locations out of ~2,000 total locations. Our location has People watching the entrance of the store as well as combing the aisles to pitch customers. Valuable products don't need a hard sell.
>Valuable products don't need a hard sell
Is your claim that Tesla products are doing such good business at Home Depot that they no longer need salespeople?
Is anything ever bad news for this company? They are bleeding red ink, haven't ever made production goals, claim to be growing exponentially, and yet are laying off employees because business is so good?
I'm with the poster down thread: the Fandom is hard to comprehend.
Re: Tesla is laying off ‘about 9%’ of its workforce as it ‘restructures’ the company
#120Tesla's market cap is $55B If you do a quick math let's say they sold 400,000 Tesla (which they haven't yet) at an average of $100,000 each (which is probably lower) its net worth comes around $44B. I feel like company is way over valued and there is lot of fluff in the evaluation.
They've got $10 billion in debt, and have benefited from about $6 billion in various subsidies, incentives and tax breaks. It works out to about $40k per car shipped. I think of Tesla not so much as a business than as a charitable religious nonprofit that relies on donations to assist the disadvantaged in acquiring luxury automobiles. Never underestimate the power of belief.
Just to correct you here, most of that $6 Billion is tax relief on future taxes. You can't account those yet.