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Nice to see the fiscal side being paid attention to more closely. It's kind of critical right now.
 

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I think they are firing all the rocket scientists. Turns out, building cars is a completely different skill set and requires a high degree of automation, unlike building rockets.
 

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I think they are firing all the rocket scientists. Turns out, building cars is a completely different skill set and requires a high degree of automation, unlike building rockets.
Indeed and you could go bankrupt if you are not careful.
 

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Its only for show. Q3 and Q4.
I think it's that and more. They need to add staff to the factory floor. For every high-paid desk jockey they could probably hire 2 or 3 floor workers and they've already figured out that they need more people on the floor and a less vertical management structure.

That and the bleeding needs to be slowed, if not stopped. Working in the red can't continue. With production expectations lowered to reasonable levels, the truth of the margins has changed the forward looking balance sheet.

They may be letting ~4000 go but I wouldn't be surprised to learn that they add that many back very soon.

You're probably right about one thing though, the quarterly financial statement is due in a few weeks, and it may come up lacking.
 

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Announcing FSD activation to bolster market capitalization worked. And it will generate more FSD option sales.
Collecting orders for the Model 3 Performance edition will help too.
And I would guess you'll see a ton of Model 3 invites in the last 2 weeks before the quarter ends to collect more cash.
Now a significant layoff will increase cash too.

All good ideas to help stop the bleeding.

In the email to employees, Musk said "profit is obviously not what motivates us" but I'm guessing it's becoming a problem.

The layoffs are a puzzle though.
They want to ramp up production to double the units of today.
They are keenly aware of quality management and control issues that continue to plague deliveries.
Customer service needs to double the staff, as does warranty repair, sales help, QC, and rework depts.

I guess it's something like, "uh, you want to double production using 91% of the staff instead of 200%? You do know what math is, right?"
 

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Discussion Starter #9
Announcing FSD activation to bolster market capitalization worked. And it will generate more FSD option sales.
Collecting orders for the Model 3 Performance edition will help too.
And I would guess you'll see a ton of Model 3 invites in the last 2 weeks before the quarter ends to collect more cash.
Now a significant layoff will increase cash too.

All good ideas to help stop the bleeding.

In the email to employees, Musk said "profit is obviously not what motivates us" but I'm guessing it's becoming a problem.

The layoffs are a puzzle though.
They want to ramp up production to double the units of today.
They are keenly aware of quality management and control issues that continue to plague deliveries.
Customer service needs to double the staff, as does warranty repair, sales help, QC, and rework depts.

I guess it's something like, "uh, you want to double production using 91% of the staff instead of 200%? You do know what math is, right?"
Tesla stated that the staff cuts will not be in vehicle production areas. Tesla previously stated that the company intended to reorganize, flatten the management structure and eliminate redundancy.
 

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Any idea how many salaried positions they have? also are they referring to only the auto side of the business? it isn't worrying they are shedding non production jobs the question comes down to, where are these salaried positions being eliminated from and are any merely being contracted out or converted to hourly? Like how are delivery centers managed? Are they hourly or salaried? Are those prepping cars permanent now and on.

it really does little good without knowing what jobs and where
 

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Any idea how many salaried positions they have? also are they referring to only the auto side of the business? it isn't worrying they are shedding non production jobs the question comes down to, where are these salaried positions being eliminated from and are any merely being contracted out or converted to hourly? Like how are delivery centers managed? Are they hourly or salaried? Are those prepping cars permanent now and on.

it really does little good without knowing what jobs and where
It's company-wide... I know a guy whose son works for the solar division and they all got cut (but they're trying to find other positions for the higher performers, possibly in the car division).

I mean, GE famously cut their bottom 10% every year and no one freaked out about it. I would expect a company growing as fast as Tesla to have lots of hires in ill-fitting positions after a few years.
 
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