Tesla Chaos: VP of Engineering Quits, Factories See Frantic Cost Cutting

Tesla CEO Elon Musk Speaking

Tesla’s VP of Engineering left the company this week, joining the ranks of over 100 executives that have abandoned Elon Musk’s company over the past year. Recent reports also show further cost-cutting measures at Tesla factories including a reduction of small parts as fasteners, and hourly workers asked to take unpaid time off.

Tesla recently announced a $35,000 Model 3 vehicle leading many analysts to worry about the possibility of a shrinking profit margin on Tesla vehicles; while Tesla also announced that it would be closing its global retail store network and planning to only sell vehicles online. The company then announced a new SUV vehicle titled the Model Y, which has led many analysts to question the demand for Tesla vehicles.

Recent reports from within Tesla’s own factory claim that the company is asking some employees to take time off and has implemented drastic cost-cutting measures. CNBC reports that the following cost-cutting measures have been implemented:

  • Asking employees to work remotely and keep travel to a minimum.
  • Telling hourly employees at the Gigafactory — the Sparks, Nevada, factory where Tesla makes batteries and drivetrains — to leave in the middle of their shifts and asking them to take paid or unpaid time off.
  • A reduction in the amount of some small parts, like rivets and fasteners, available at Tesla’s vehicle assembly plant in Fremont, California.

The company has also laid off approximately eight percent of its workforce in the past week alone. Tesla CEO Elon Musk is set to appear in court soon to defend himself against accusations of contempt of court by the Securities Exchange Commission.

Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan or email him at lnolan@breitbart.com


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