Guest post by David Middleton
In a stunning setback to
Stark Industries’ Tesla Motors’ effort to save the world from Hydra Gorebal Warming, hundreds of workers were fired in an effort to speed up production of the Iron Legion Model 3…
Tesla has reportedly fired hundreds of employees amid signs that the company is off to a slow start in manufacturing its crucial Model 3 electric car.
But the firings reportedly included engineers, managers, salespeople and factory employees.
The move comes as Tesla is aiming to rapidly expand production of its new mass-market Model 3. CEO Elon Musk had said the company would be making 5,000 cars per week by the end of the year, but that goal appears to be in jeopardy amid early stumbles.
Musk acknowledged on Oct. 6 that the company was facing “bottlenecks” in Model 3 production. He said Tesla was “diverting resources” to clear up the Model 3 production challenges, which was one factor in the company’s decision to delay its reveal of an electric semi-truck by about three weeks.
The company said in a Securities and Exchange Commission filing on Oct. 2 that “a handful” of its “manufacturing subsystems” have “taken longer to activate than expected.”
When a CEO issues production guidance that he knows to be false…
The Truth Is Catching Up With Tesla
CEO Elon Musk is a visionary, but there is a fine line between setting aggressive goals and misleading shareholders
Oct. 7, 2017 2:02 p.m. ET
New revelations about Tesla Inc.’s production of the highly anticipated Model 3 sedan should shock, but not surprise, investors.
The Wall Street Journal reported Friday that Tesla has recently been building major portions of the Model 3 by hand. This comes less than a week after Tesla announced it fell short of its third-quarter production guidance of 1,500 cars by more than 80%.
The WSJ article goes on to say:
“There is a fine line, however, between setting aggressive goals and misleading shareholders.
Tesla is inching closer to that line. Tesla was making three Model 3s on an average day in the third quarter. Mr. Musk should have known in August, when production guidance was reiterated, that the company wasn’t going to produce 1,500 Model 3s by the end of September.”
When a CEO routinely issues production guidance that he knows to be false…