A driver recharges the battery of his Tesla car at a Tesla Super Charging station in a petrol station on the highway in Sailly-Flibeaucourt, France,  January 12, 2019. REUTERS/Pascal Rossignol
Tesla has delivered over 245,000 electric cars and SUVs in 2018, nearly as many as during all previous years combined. Reuters

Elon Musk's Tesla plans to lay off 7 per cent of its staff



Tesla's chief executive Elon Musk on Friday said that the company would be cutting its staff by about 7 per cent amid "very difficult" trading conditions.

The electric car and solar panel maker notified its employees about the staff cuts and other plans in an email posted on Tesla's website.

Mr Musk said Tesla hopes to post a "tiny profit" in the current quarter but a 30 per cent expansion in its workforce last year was more than it can support.

Tesla's shares tumbled earlier this month after it cut vehicle prices by $2,000 and announced fourth-quarter sales figures that fell short of Wall Street estimates.

"Our products are too expensive for most people," Mr Musk said in the memo to Tesla staff. saying the company has to "work harder".

"Tesla has only been producing cars for about a decade and we're up against massive, entrenched competitors," he said.

Mr Musk said in a tweet in October, last year, that Tesla, based in Palo Alto, California, had 45,000 employees. A 7 per cent cut would involve laying off about 3,150 people.

"We unfortunately have no choice but to reduce full-time employee headcount by approximately 7 per cent ... and retain only the most critical temps and contractors," he said.

The company says it delivered more than 245,000 electric cars and SUVs last year, nearly as many as all previous years combined. But its 2018 production fell far short of a goal set nearly three years ago of manufacturing 500,000 vehicles for the year. That goal was announced in May of 2016 based on advance orders for its mid-range Model 3, which Mr Musk said sells for $44,000.

_______________

Read more:

Musk says Apple has lost allure and Tesla sets its sights on e-bikes

Volkswagen will spend $800 million on electric vehicle plant in US

_______________

Mr Musk said Tesla plans to ramp up production of the Model 3, "as we need to reach more customers who can afford our vehicles."

"Attempting to build affordable clean energy products at scale necessarily requires extreme effort and relentless creativity," he said in the memo, "but succeeding in our mission is essential to ensure that the future is good, so we must do everything we can to advance the cause."

Tesla broke ground earlier this month for a factory in Shanghai, its first outside the US. Mr Musk said it plans to begin production there of the Model 3 and a planned crossover by the year's end.

Tesla and other global automakers including General Motors, Volkswagen and Nissan are pouring billions of dollars into manufacturing electric vehicles in China.

COMPANY PROFILE

Name: SmartCrowd
Started: 2018
Founder: Siddiq Farid and Musfique Ahmed
Based: Dubai
Sector: FinTech / PropTech
Initial investment: $650,000
Current number of staff: 35
Investment stage: Series A
Investors: Various institutional investors and notable angel investors (500 MENA, Shurooq, Mada, Seedstar, Tricap)

Central Bank's push for a robust financial infrastructure
  • CBDC real-value pilot held with three partner institutions
  • Preparing buy now, pay later regulations
  • Preparing for the 2023 launch of the domestic card initiative
  • Phase one of the Financial Infrastructure Transformation (FiT) completed
FA Cup quarter-final draw

The matches will be played across the weekend of 21 and 22 March

Sheffield United v Arsenal

Newcastle v Manchester City

Norwich v Derby/Manchester United

Leicester City v Chelsea

COMPANY PROFILE

Company name: Klipit

Started: 2022

Founders: Venkat Reddy, Mohammed Al Bulooki, Bilal Merchant, Asif Ahmed, Ovais Merchant

Based: Dubai, UAE

Industry: Digital receipts, finance, blockchain

Funding: $4 million

Investors: Privately/self-funded

Top financial tips for graduates

Araminta Robertson, of the Financially Mint blog, shares her financial advice for university leavers:

1. Build digital or technical skills: After graduation, people can find it extremely hard to find jobs. From programming to digital marketing, your early twenties are for building skills. Future employers will want people with tech skills.

2. Side hustle: At 16, I lived in a village and started teaching online, as well as doing work as a virtual assistant and marketer. There are six skills you can use online: translation; teaching; programming; digital marketing; design and writing. If you master two, you’ll always be able to make money.

3. Networking: Knowing how to make connections is extremely useful. Use LinkedIn to find people who have the job you want, connect and ask to meet for coffee. Ask how they did it and if they know anyone who can help you. I secured quite a few clients this way.

4. Pay yourself first: The minute you receive any income, put about 15 per cent aside into a savings account you won’t touch, to go towards your emergency fund or to start investing. I do 20 per cent. It helped me start saving immediately.

Gender pay parity on track in the UAE

The UAE has a good record on gender pay parity, according to Mercer's Total Remuneration Study.

"In some of the lower levels of jobs women tend to be paid more than men, primarily because men are employed in blue collar jobs and women tend to be employed in white collar jobs which pay better," said Ted Raffoul, career products leader, Mena at Mercer. "I am yet to see a company in the UAE – particularly when you are looking at a blue chip multinationals or some of the bigger local companies – that actively discriminates when it comes to gender on pay."

Mr Raffoul said most gender issues are actually due to the cultural class, as the population is dominated by Asian and Arab cultures where men are generally expected to work and earn whereas women are meant to start a family.

"For that reason, we see a different gender gap. There are less women in senior roles because women tend to focus less on this but that’s not due to any companies having a policy penalising women for any reasons – it’s a cultural thing," he said.

As a result, Mr Raffoul said many companies in the UAE are coming up with benefit package programmes to help working mothers and the career development of women in general. 

GOLF’S RAHMBO

- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)

Herc's Adventures

Developer: Big Ape Productions
Publisher: LucasArts
Console: PlayStation 1 & 5, Sega Saturn
Rating: 4/5

Kill

Director: Nikhil Nagesh Bhat

Starring: Lakshya, Tanya Maniktala, Ashish Vidyarthi, Harsh Chhaya, Raghav Juyal

Rating: 4.5/5

UAE athletes heading to Paris 2024

Equestrian
Abdullah Humaid Al Muhairi, Abdullah Al Marri, Omar Al Marzooqi, Salem Al Suwaidi, and Ali Al Karbi (four to be selected).
Judo
Men: Narmandakh Bayanmunkh (66kg), Nugzari Tatalashvili (81kg), Aram Grigorian (90kg), Dzhafar Kostoev (100kg), Magomedomar Magomedomarov (+100kg); women's Khorloodoi Bishrelt (52kg).

Cycling
Safia Al Sayegh (women's road race).

Swimming
Men: Yousef Rashid Al Matroushi (100m freestyle); women: Maha Abdullah Al Shehi (200m freestyle).

Athletics
Maryam Mohammed Al Farsi (women's 100 metres).


Energy This Week

Expert analysis on oil & gas renewables and clean energy

      By signing up, I agree to The National's privacy policy
      Energy This Week