-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
- Status
As Elon kinda states on his tweet, these is a difficult but necessary RIF as part of a necessary reorganization of the company. With mass production of both cars and batteries and solar roofs/panels, as well as profitability all being priorities, Tesla's needs for human capital will be a major part of building for the future. While I realize this is going to require fewer and perhaps a different mix of people, I find it difficult to refer to some of the associates that helped Tesla get to where it's at as "deadwood." Many if not most of these people being rifed were great contributors, it's just that their positions aren't required in the reorganization. Telling good people they no longer have a job in a company they loved is hard, sometimes really hard, regardless of how necessary it is. I know, I've had to do it several times in the past.
So I guess my point is, while I'm sure this will be a good move for the company and for us as investors, let's thank the people leaving for the help they provided. I think Elon and his management team have done a great thing by providing severance and more significantly stock and/or options, so that they can still be part of the team as we turn the corner into profitability.
So I guess my point is, while I'm sure this will be a good move for the company and for us as investors, let's thank the people leaving for the help they provided. I think Elon and his management team have done a great thing by providing severance and more significantly stock and/or options, so that they can still be part of the team as we turn the corner into profitability.
Here, here!
Having lived through the recession while employed at an auto supplier, I've seen there are fair and humane ways to RIF. They aren't the easy way though...
Marketwise:
Treating departing employees well helps to attract top new employees which can only serve to help the bottom line.
TSLA was 3rd most traded stock on German small/retail investor exchange tradegate:
Seems like many people just jumping on board on rising price on FOMO.
TSLA doesn´t often show in top 5.
Seems like many people just jumping on board on rising price on FOMO.
TSLA doesn´t often show in top 5.
jhm
Well-Known Member
Todd Burch
14-Year Member
The layoffs will undoubtedly prevent significant short coverings, although we will likely continue to see price rise. So no squeeze in the short term, I don't think.
I think enough shorts will cling to the layoffs as evidence that bankwuptcy and a huge stock drop is just around the corner.
That's ok. I can wait a few more months for the BIG gains.
I think enough shorts will cling to the layoffs as evidence that bankwuptcy and a huge stock drop is just around the corner.
That's ok. I can wait a few more months for the BIG gains.
EarlyAdopter
Active Member
$338 held to a picture perfect T. Nice gradual rise from there into the close. Hopefully that portends reduced volitility and more gradual movements through the rest of the week.
I might like to have seen a close higher than the open. There's a chance this was a blow-off top. We'll see. But overall, another really strong day.
Price creeping up AH. Objectively speaking,shorts are getting about a 20 point discount if they act now.
Say 9% layoff sets Model Y back 6 months just for conversation sake, it's not going to affect whatever is going to already happen through end of 2018.
Every Model 3 made is a Model 3 sold. Hopefully many of them higher margin Model 3s.
Hopefully P Model 3s.
Hopefully a P Model 3 for me, if hopefully Elon could let me configure one.
Say 9% layoff sets Model Y back 6 months just for conversation sake, it's not going to affect whatever is going to already happen through end of 2018.
Every Model 3 made is a Model 3 sold. Hopefully many of them higher margin Model 3s.
Hopefully P Model 3s.
Hopefully a P Model 3 for me, if hopefully Elon could let me configure one.
sundaymorning
Active Member
I agree, I think the squeeze will happen only after numbers are released and there are more/stronger confirmation that cash flow positive will happen soon.
An incontrafutable positive after hours data release that causes a gap up would be interesting...
K_Dizzle
Member
You guys act like the real big fish don’t have access to the numbers before they’re released to the public.
Dennisj00
Member
Any company the size of Tesla could lay off 10% every six months without noticing any difference.
Indeed they could have been let go in modest numbers at a time over a period of months and gone unnoticed. Instead Elon tweeted the announcement of mass white collar terminations (but not blue collar) following what should have been an expected leak of his email to employees. This method would have been more effective in signalling to Wall Street and other investors that Tesla is serious about not only the production ramp, but also its ability to demonstrate profits.
Last edited:
Krugerrand
Meow
Question: Why is this employee reduction keep being referenced as a layoff? Elon never said layoff, did he? My understanding is that it’s a company restructure.
When a person is laidoff, traditionally they get hired back in time unless the company continues to downsize or go out of business. Tesla is doing neither.
RobStark
Well-Known Member
Also a 9% RIF is a real layoff.
It doesn't look like you got fired for cause to your next potential employer.
It doesn't look like you got fired for cause to your next potential employer.
RobStark
Well-Known Member
I, like many people, use "layoff" and "reduction in force" interchangeably.
But I yes there is a difference.
Layoff is usually a done with unionized blue collar workers.
If and when the company starts hiring again for the position in which you were laid off then the laid off employee gets first crack at that job. Even if that means moving from one factory to another one in another State. Per contract between employer and Union.
Never heard of white collar salaried employees being "laid off" then rehired.
Todd Burch
14-Year Member
Fair point, although the dictionary definition I found is:
1. a discharge, especially temporary, of a worker or workers.
So it doesn’t seem like it’s exclusively temporary, but typically. Media (including pro-Tesla) has been using term layoff.
You’re right, Elon exclusively referred to it as a restructuring. For most discussion here I think the difference is largely tomayto vs tomahto.
1. a discharge, especially temporary, of a worker or workers.
So it doesn’t seem like it’s exclusively temporary, but typically. Media (including pro-Tesla) has been using term layoff.
You’re right, Elon exclusively referred to it as a restructuring. For most discussion here I think the difference is largely tomayto vs tomahto.
My thoughts exactly, can not be and was not referred to as a layoff. This is a reduction in force based on their restructuring. It's quite possible many are in the Energy unit since they're moving away from the leasing business model, but regardless this is definitely not a layoff.
It really is semantics. The folks that want to drive the SP down will spin it one way and the longs (myself included) will see it for what it is.
If the CEO say's we need to reduce the "barnacles" and then in the following months does just that....well I see this as a positive.
If the CEO say's we need to reduce the "barnacles" and then in the following months does just that....well I see this as a positive.
Stretch2727
Engineer and Car Nut
- Status
Similar threads
- Locked
- Locked
- Locked
- Poll
