Autotrader and Kelley Blue Book analysts are providing their thoughts on Tesla’s 9 percent reduction of its workforce.
Michelle Krebs, executive analyst for Autotrader:
“Tesla has signaled organizational changes in recent weeks and here it is. It is clear that Tesla is under tremendous pressure to finally turn a profit and is attempting to address it by cutting overhead. Also notable is Tesla is not cutting production jobs at a time when pushing Model 3s out the door is a top priority.”
Rebecca Lindland, executive analyst for Kelley Blue Book:
“Nine percent of the workforce is a pretty good-sized number, but as they’ve been ramping up for the Model 3, as well as maintaining sales of the Model S and Model X, it is expected that payroll may be bloated. This is an attempt to cut costs and contain expenses.”
Akshay Anand, executive analyst for Kelley Blue Book:
“As Tesla continues to evolve, it is no surprise they are looking to cut costs like any other big company. Unfortunately, layoffs are a common occurrence in these instances, and Tesla is not immune to pressures as we know. The big hope for Tesla and investors alike is that these layoffs will not impact Model 3 goals and quality.”
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