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Tighten recruitment? It is exposed that the recruitment of Tesla needs Musk's personal approval.

2024-03-02 Update From: AutoBeta autobeta NAV: AutoBeta > News >


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According to media reports such as the US science and technology media The Information, Tesla CEO Elon Musk said in an email to employees on May 15 local time that Tesla would not recruit new employees, including contractors, unless he personally approved every new employee recruited by the company.



In the email, Musk said he wanted to know better about Tesla's recruitment and asked Tesla executives to send him some of the recruitment application lists every week, while reminding them to "think carefully" before submitting this type of email. "Please think carefully before sending me a recruitment request," says Mr Musk. And before receiving my email approval, no one can join Tesla, not even a contractor. "

Foreign media believe that Musk's move may be just to better understand Tesla's recruitment process, but considering that Tesla has recruited an average of about 30, 000 new employees in each of the past three years, it is hard to imagine how long it will take Musk to approve new employees, which may to some extent lead to a sharp slowdown in Tesla's recruitment.

However, industry insiders believe that Tesla tightened recruitment or tried to cut costs in this way to make up for the sharp price reduction of the entire product line in 2023. During the year, the prices of Tesla models were reduced in many markets around the world, including China, Japan, South Korea, Australia, Germany, France, Spain, Portugal, the Netherlands, the United Kingdom, Norway, the United States and other countries. the price reduction ranges from 1% to 23%. Among them, the decline in the Chinese market is unprecedented, and then triggered a number of domestic car companies to follow suit. On January 6 this year, Tesla China announced a large-scale price reduction, with Model 3 falling by 2.0-36000 yuan and Model Y by 2.9-48000 yuan.


It should be noted that Tesla opened the price increase mode after entering May. On May 2, the prices of Tesla China's Model 3 and Model Y cars rose by 2000 yuan, and on May 5, Tesla raised the prices of all new Model S and new Model X models, an increase of 19000 yuan. In addition, Tesla has also raised prices in markets such as the United States, Japan and Canada, including a price increase of $250,300 (about 1733 yuan) in the United States market and C $300 (about 1530 yuan) in Canada. The Japanese market rose 37000 yen (about 1869 yuan).

As of press time, Tesla officially did not respond to the above news.

In fact, as early as June last year, Musk issued an internal email saying that the company needed to cut 10 per cent of jobs and suspend global hiring, and said bluntly in an email titled "suspend global hiring": "I have a very bad feeling about the economy."

According to Tesla's public data, the size of Tesla's team has been expanding rapidly since 2010. among them, the number of Tesla employees from 2019 to 2021 was 48016, 70757 and 99290 respectively. Tesla recruited 28533 employees worldwide, an increase of 40.3%, with new jobs mainly concentrated in Europe and China.


Tesla's staff size over the years

According to the latest data, as of December 31, 2022, Tesla had a total of 127855 employees worldwide, an increase of 28.77% compared with 99290 employees in the same period in 2021, which means that Tesla added 28565 new employees in one year.

In the middle of last month, Tesla shocked investors by releasing results for the first quarter of 2023. According to the data, Tesla achieved revenue of US $23.329 billion in the first quarter, up 24% from the same period last year; net profit was US $2.513 billion, down 24% from the same period last year; gross profit was US $4.511 billion, down 17% from the same period last year; and the total gross profit margin was 19.3%, down more than 9.77% from the same period last year. Free cash flow was $441 million, down 80% from the same period last year. In terms of new car delivery, Tesla delivered a total of 422900 new cars worldwide in the first quarter, an increase of 36% over the same period last year, of which 10700 were delivered by Model Spicer X and 412200 by Model 3Unip Y. Although Tesla's delivery volume increased in the first quarter, it was less than expected. The market and investors were worried that Tesla's "price war" would erode Tesla's future profit margins, so after the release of the financial data, Tesla's market value plummeted 270 billion overnight.

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