As Tesla CEO Elon Musk reportedly ponders layoffs, latest monetary studies from U.S. automakers present the main electrical car (EV) producer lags within the quantity of income generated for every of its workers.
Tesla reported virtually $97 billion in income final yr, equal to only beneath $690,000 for every of its over 140,000 workers.
By comparability, Basic Motor generated over $1 million in income for every of its 163,000 workers in 2023, and Ford Motor raked in $937,000 for every of its 173,000 employees.
Traders grew to become more and more fearful about mushy demand for EVs and elevated competitors after Tesla in January warned of “notably decrease” gross sales progress this yr.
With Tesla more and more targeted on prices, the corporate has requested managers whether or not every of their workers’ positions had been crucial, stoking layoff fears, Bloomberg Information reported on Wednesday.
Tesla’s inventory gained over 1% on Thursday and a bit over 2% Friday, however the firm has misplaced over $180 billion in market capitalization to this point in 2024. Tesla is now valued at $603 billion, simply forward of chipmaker Broadcom at $601 billion.
Tesla’s gross margins – as soon as the envy of different automakers – shrank within the December quarter to their lowest since 2019. In the identical quarter, its income rose 3% to $25.17 billion, its slowest tempo of progress in additional than three years.
Whereas Tesla’s income per employee lagged GM and Ford final yr, it improved over 2022, when it was $637,000. Tesla elevated its world workforce by about 10% in 2023, based on a latest submitting.
Wall Road’s tech-related heavyweights have laid off tons of of hundreds of employees over the previous two years, shedding among the jobs they added in the course of the coronavirus pandemic. In lots of instances they’ve continued to develop their gross sales.
Final week, Meta Platforms reported a 25% surge in December-quarter income whereas concurrently reducing prices and bills by 8% after eliminating greater than 21,000 jobs since late 2022.
