As Tesla CEO Elon Musk reportedly ponders layoffs, latest monetary studies from U.S. automakers present the main electrical automobile (EV) producer lags within the quantity of income generated for every of its workers.
Tesla reported nearly $97 billion in income final 12 months, equal to only below $690,000 for every of its over 140,000 workers.
By comparability, Common 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 staff.
Buyers grew to become more and more nervous about comfortable demand for EVs and elevated competitors after Tesla in January warned of “notably decrease” gross sales development this 12 months.
With Tesla more and more centered on prices, the corporate has requested managers whether or not every of their workers’ positions have been important, 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 date 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 development in additional than three years.
Whereas Tesla’s income per employee lagged GM and Ford final 12 months, it improved over 2022, when it was $637,000. Tesla elevated its world workforce by about 10% in 2023, in response to a latest submitting.
Wall Road’s tech-related heavyweights have laid off lots of of hundreds of staff over the previous two years, shedding a few of the jobs they added in the course of the coronavirus pandemic. In lots of circumstances 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.