The Clinton News Network (CNN) has announced that Tesla is laying off another 7 percent of its workers – having previously laid off 9 percent of them last summer.
So, 16 percent of its workforce is no longer working because Tesla – despite all the infusions of taxpayer dollars – cannot afford to pay them.
Kind of like the Post Office.
Instead, CNN says that:
“The cheapest version of the carmakers’ most affordable model currently sells for $44,000. The goal is to reduce the price to $35,000 this year.”
This is either blatantly dishonest or egregiously incompetent (you decide).
Musk talked all last year – and the year prior – about the $35,000 Model 3. This was supposed to be the “most affordable” Model 3 and the one which was both the key to mass production and Teslian profitability.
Instead, the car people can actually buy – with help from Uncle, who helps himself to other people’s money in order to provide the “help” – stickers for $44,000 to start and actually transacts for more than $60,000.
This for a car that – its electric drivetrain aside – is essentially an entry-luxury compact sedan that ought to be priced around $32,000. In other words, a $12,000 premium to drive something like an Audi A3 or BMW 3 that happens to be battery powered.
Which maybe worth it to those who get wet over thoughts of driving a battery-powered car – but for the non-EV-addled, paying $12,000-plus extra to drive a car that can only go half or less as far as a non-electric car that also makes its owner wait for hours to recharge isn’t particularly enticing, even if virtue signaling.
So, Elon’s having trouble. He says Tesla is “…up against massive, entrenched competitors” (he means, competitors who make a profit because they have products people want to buy at a price that includes a profit for the company) and must work “…much harder than other manufacturers to survive while building affordable, sustainable products.”
Well, the affordable part is good. But “sustainable”? What – other than virtue signaling – does this mean?
A product either sells on its merits – or it does not. If it does, it is by definition “sustainable.”
If it does not, it isn’t.
Teslas don’t – but Elon thinks his (and his fanbois’) emotional attachment to electric cars – their “sustainabiity” – ought to matter more than whether EVs make economic and functional sense.
He is like a little boy, playing with his action figures – imaging a world of his own creation. Which would be okay if Elon were a little boy – rather than a middle-aged man with the backing of the government to make his dreams come true.
Meanwhile, Tesla’s on deck to lose more money in the fourth quarter.
Tesla (TSLA) shares fell 8% in premarket trading.
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