Tesla is not exempt from problems in the supply chain due to the restrictions imposed by the Chinese government in order to reduce the wave of infections in the country. Bloomberg has revealed that Elon Musk has sent an internal note to his employees warning of a “very difficult quarter” for the low number of vehicles delivered, and has encouraged its workers to work hard to get back on their feet.
“This has been a very difficult quarter, mainly due to the challenges of the supply chain and production in China. “So we have to come together strongly to recover!”, Elon Musk has mentioned in the internal mail to which he has The aforementioned medium had access. Tesla broke a record during the first three months of the year by delivering a total of 310,048 vehicles worldwide. This is a figure well above what analysts forecast for this quarter. They expect, specifically , that the company distributes a total of 296,000 models.
This predicted drop in vehicle deliveries during the second quarter of the year is due, as Musk has mentioned, to the low production of the Tesla plant in Shanghai. This, in fact, remained closed for days, after the Chinese government decreed a massive confinement due to the increase in COVID-19 cases. The estimated production of 1,000 vehicles per day in this factory dropped to zero during the 22 days of closure. In addition, it barely increased to about 200 models a day after its reopening on May 25.
Currently, according to Bloomberg, the Shanghai plant is recovering its usual production ratewhile factories in Austin, Texas, Berlin, and Fremont, California, are ramping up production of new Tesla models.
Elon Musk plans to lay off 10% of Tesla staff
The email sent to employees warning about the difficult quarter for Tesla is somewhat different from the one Elon Musk sent to company executives just a few weeks ago. On that note, let’s remember, the tycoon requested pause of new hires. Also the 10% cut in Tesla’s workforce due to a “super bad feeling” in the world economy.
The dismissal of a tenth of the staff, it would mean putting 10,000 people out of work, as Tesla has about 100,000 employees worldwide. On the other hand, the hiring pause would affect another 5,000 people; the number of vacancies the company had available globally.
Musk also warned his employees that remote work was not an option at Tesla. He detailed in another email that if they did not return to the offices, he would assume they would have resigned.
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