According to a reliable source, Tesla management informed employees on Monday that the recent layoffs, which resulted in a significant reduction of staff in certain divisions, including high-performing individuals, were primarily a result of the company’s weak financial performance.

The team was informed of the layoffs only one week prior to Tesla’s anticipated release of its first-quarter earnings. Tesla’s decision to take this step is a response to the ongoing electric vehicle (EV) price competition, which has caused a decline in the company’s profit margin for multiple consecutive quarters. In 2023, the corporation achieved a remarkable milestone by delivering a total of 1.81 million automobiles, setting a new record. However, Tesla’s profit margins were negatively impacted as they constantly reduced prices in order to increase sales and gain a competitive advantage.

Tesla has notified its employees that around 14,000 workers, which accounts for over 10% of the global organization’s workforce, will be laid off. These job cuts will affect Tesla’s businesses in the United States, Europe, and China. The layoffs, which impacted staff in all departments and at various levels of seniority, were implemented to decrease expenses and enhance efficiency in anticipation of the company’s forthcoming expansion, as stated in an internal email from CEO Elon Musk that has been accessed.

High achievers also reduce
According to two anonymous sources who spoke, a significant number of the people that were let go were highly skilled and accomplished. A source expressed astonishment at the magnitude of skilled personnel laid off and observed that a significant percentage of those impacted were engaged in projects that had been deprioritized by Tesla. The source refrained from specifying the particular projects.

According to sources, certain divisions experienced layoffs that exceeded the 10% reduction mentioned in the companywide email. Management informed me that a reduction of 20% was made to their workforce.

“I experienced a 20% reduction in my team, including some highly skilled players,” they stated.

The shakeup is occurring concurrently with Musk’s ongoing efforts to steer the company towards the development of fully autonomous vehicles. Tesla has lately abandoned its ambitions to manufacture a more affordable electric vehicle (EV) with a starting price of approximately $25,000. Instead, they have decided to utilize the ongoing development of a foundational platform to support a purported robotaxi, which Elon Musk claims will be unveiled on August 8th.

According to his biographer, Walter Isaacson, Musk made an effort in the past to give priority to the project focused on developing vehicles specifically for robotaxi services. In 2022, he informed the employees of his desire for a “clean robotaxi” devoid of any steering wheel or pedals. Tesla’s lead designer, Franz von Holzhausen, and engineering VP, Lars Moravy, clandestinely spearheaded the development of the affordable electric vehicle (EV) project and eventually persuaded Elon Musk to pursue both options. However, recent reports indicate that Musk has now reversed his decision.

High-level executives depart
Two prominent executives, Drew Baglino, Tesla’s Senior Vice President of Powertrain and Energy, and Rohan Patel, Vice President of Public Policy and Business Development, have both departed from the business.

Patel informed me that he made the decision to resign from Tesla on Sunday evening due to significant general changes occurring within the firm. Patel, who had been routinely interacting with Tesla customers and enthusiasts on X in recent months, chose not to provide detailed information. In his message, he acknowledged that it would be more prudent for him to refrain from making conjectures. “Tesla will experience a significant increase in strength and resilience, and change will be beneficial,” he further stated.

Baglino informed me that he decided to depart from Tesla after a period of 18 years. “I am satisfied with the positive influence I have had; my leadership team is competent, and the energy businesses under my responsibility are performing well,” he expressed in a message.

“Baglino’s responsibility included overseeing powerdrives and new battery projects. According to Sandeep Rao, the head of research at Leverage Shares, a financial services company based in London, there is a perception that there is currently a lack of sustainable innovation. This perception may be one of the reasons why Baglino is leaving,” speculated Rao in an interview.

Baglino’s resignation occurred shortly after the departure of Tesla’s former CFO, Zachary Kirkhorn. In January, Musk expressed his desire on X, then known as Twitter, to obtain approximately 25% voting control of Tesla. His intention is to devote more attention to the firm itself than to his other ventures and contribute to Tesla’s leadership in the fields of AI and robots.

Ford has officially said that it will postpone the manufacturing of two electric vehicles, specifically a cutting-edge EV truck and a three-row EV SUV. The duo is now scheduled to arrive in 2026 and 2027, experiencing delays of one and two years, respectively. Instead, the company will replace them with hybrids in its entire U.S. range.

The CEO of Ford has been indicating delays for some months. In the previous autumn, it deferred $12 billion in scheduled investments. During a financial conference call in February, CEO Jim Farley indicated that hybrids will have a progressively significant impact on our industry’s shift and will remain a permanent fixture. That is the type of serious discussion that shareholders greatly appreciate.

The decision is expected to be well-received by Wall Street, particularly in light of Toyota’s announcement that its sales in the United States increased by 22% compared to the previous year, driven by high demand for hybrid vehicles. Ford’s strategic move seems to be aimed at enhancing cash flow and immediate profitability, a prudent decision for a firm of its magnitude, particularly during periods of unpredictability.

However, it is worth noting that Ford stands out from other well-established car manufacturers in its ability to excel by adopting a startup mentality, a mindset that it seems to have embraced more lately, despite the delays in electric vehicle production. It achieves greater success when it actively influences the market rather than simply reacting to it.

Recently, Ford showcased its startup attitude through the introduction of the Mustang Mach-E, an all-electric crossover. Initially, the intention was to create a practical crossover vehicle with an electric motor located in the front, when the concept of electric vehicles (EVs) first emerged about ten years ago. The design possessed aerodynamic qualities, although it lacked inspiration to such an extent that one of the company’s exterior designers expressed doubt about its marketability. Based on the appearance of the proposed design, it was reasonable to have misgivings.

However, the then-CEO, Jim Hackett, abandoned the concept and imposed a strict deadline of two years for the team to provide an alternative solution. Ford’s achievement of securing second place in U.S. EV sales for consecutive quarters can be attributed to the successful introduction of a crossover model.

The success of the Mustang Mach-E was not a result of luck or chance. Ford has a history of performing impressive feats or achieving unexpected successes. In the 1980s, when American automakers faced significant competition from Japanese imports, Ford abandoned its bulky and weighty designs and created the Taurus, which was introduced to the market in late 1985. The car, with its elegant design, spacious interior, and reasonable price, was a novelty for American buyers and quickly became popular. In the initial three years, Ford managed to sell one million units of the product, which may be considered a triumph that probably prevented the business from going bankrupt.

After a span of five years, Ford once again changed its direction by introducing the Explorer. Although SUVs were not a novel concept, at that period, the majority of them were two-door vehicles that prioritized practical features such as towing and off-roading. Automobiles continued to be the prevailing preference among customers. However, with the addition of rear doors and a wide range of amenities, Ford successfully converted the SUV into a vehicle that is suitable for transporting families. Although the debut of the Explorer may have negatively impacted the sales of the company’s automobiles, it turned out to be a wise decision. Not only did it drive the company’s growth for another ten years, but it also anticipated a future where SUVs would dominate the market.

Additionally, Ford employed a rapid and efficient strategy in the creation of the initial Mustang, enabling it to establish a completely novel classification of swift and costly “pony cars.” After World War II, the automaker created the ’49 Ford, a vehicle that defied traditional design and propelled the company to the forefront of sales. Additionally, it is important to acknowledge the original Ford assembly line, which, although not a tangible product, was undeniably a result of entrepreneurial innovation.

Farley is currently confronted with various obstacles. His predecessors were essentially combining and selecting designs, platforms, and manufacturing procedures, while the core component of each of those vehicles, the engine, stayed mostly unchanged. Manufacturers are faced with the task of completely rethinking their approach when it comes to electric vehicles, or at the very least, removing the core components without compromising the original vehicle’s exceptional qualities.

Ford has demonstrated exceptional proficiency in several endeavors. The Mustang Mach-E and the F-150 Lightning are widely regarded as not only outstanding electric vehicles but outstanding automobiles in general.

However, these products have not achieved the level of success that Ford had anticipated. One reason for their lack of popularity is their high cost; however, recent price reductions have demonstrated that there is still a desire for them. Another contributing factor is the insufficient development of the charging infrastructure needed to support these vehicles. If the act of charging is impeding Ford’s ability to sell more electric vehicles, perhaps the company should directly confront and resolve this issue. If Ford is unable to price its electric vehicles competitively while maintaining profitability, it may be necessary for the company to explore other cost-effective methods of manufacturing.

The corporation has initiated the process by establishing Skunkworks, headed by former Tesla executive Alan Clarke, with the objective of creating an affordable electric vehicle. If the team successfully introduces a product to the market, there is a possibility that some of the entrepreneurial energy will be present at Ford.

Although the CES doesn’t start until tomorrow, we’re back in Vegas for the event, and several exhibitors have already shown their new items at numerous press conferences and media events. In addition to more news from TV manufacturers, gaming laptop manufacturers, smart home firms, and other companies, we are starting to see some of the early automotive news that typically headlines CES today. Here is a summary of the top news from Day 1 of CES 2023 in case you haven’t caught up yet.

Since last night
But first, even though we covered the most of yesterday’s launches in a different video, more things were announced last night after we had finished filming that. For instance, Withings demonstrated the $500 pee-scanning U-Scan toilet computer.

It’s a 90mm block that you install inside your toilet bowl as a deodorizer and employs a microfluidic device that functions like a litmus test to identify the components in your pee. Although Withings is developing a consumer-focused version that will evaluate your nutrition and hydration levels and forecast your ovulation and period cycles, you will need to decide the precise tests you wish to run in your module. Prior to launching in the US, it is still awaiting regulatory approval from the European Union.

We also witnessed the Fufuly pulsing cushion by Yukai Engineering, which was less… gross news. Although a vibrating cushion may sound like something out of an anime, the concept is that cuddling something that might simulate real-life pulsation may have calming effects. Another thing that could calm anxiety? watching a video of adorable birds! Additionally, Bird Buddy unveiled a brand-new intelligent feeder with a built-in camera so you can watch your feathered friends while they build nests. The most recent version, which is intended for hummingbirds, uses AI to recognize the different breeds that are in the area and, in conjunction with a motion sensor, determines when they are ready for a feast.

Speaking of nibbles, there was a ton of food-related technology news last night, like as the $1,000 stand mixer from GE Profile that has a digital scale and voice controls. We also observed OneThird’s freshness scanners, which determine the freshness of produce using near-infrared lasers and secret algorithms. Even the shelf life of an avocado can be determined instantly, preventing food waste!

We also witnessed the Wisear neural earbuds that let you control playback by clenching your jaw, the blood pressure monitor that hooks onto your finger from Valencell, and Loreal’s robotic lipstick applicator for people with limited hand or arm mobility. Smart speakers, smart pressure cookers, smart VR gloves, smart lights, and more were available.

Let’s move on to the recent news. Prior to the onslaught that is set to happen tomorrow, there was only a little trickle of auto news. Volkswagen debuted the ID.7 EV sedan, tempting us with only the name and a rough body form. BMW, meanwhile, revealed the I Vision Dee, or “Digital Emotional Experience,” to provide additional information about its futuristic I Vision concept vehicle development. It’s a simplified design with a heads-up display that spans the entire front windshield. Many of the Dee’s characteristics are anticipated to be incorporated into production vehicles starting in 2025, notably BMW’s new NEUE KLASSE (new class) EV platform. BMW’s Mixed Reality slider will also be available on the Dee to regulate how much digital stuff is shown on the display.

TVs
The premium 2023 TVs from Samsung were also not unveiled until the evening, with this year’s models emphasizing on MiniLED and 8K technologies. Additionally, it added more sizes to its selection and unveiled new soundbars with Dolby Atmos capability at all price points. While this was going on, competitor LG unveiled a 97-inch M3 TV that can wirelessly receive 4K 120Hz content, allowing you to deal with fewer connections in your living room and… more soundbars. Leave it to LG and Samsung to essentially duplicate each other’s actions.

Hisense, a competitor with comparatively smaller TVs, today announced its 85-inch UX Mini LED TV, which has more than 5,000 local dimming zones and a maximum brightness of 2,500 nits. Startup Displace, meanwhile, demonstrated a brand-new 55-inch wireless OLED TV that can be attached to any surface via vacuum suction, doing away entirely with the requirement for a wall mount or stand. You can even live without a power cord thanks to its four inbuilt batteries. Essentially, this is a fully functional, portable TV.

Laptops

We also noticed more HP, MSI, and ASUS laptops. A laptop with glasses-free 3D, a sizable Zenbook Pro 16X with lots of space for thermal dissipation, and a Zenbook 14X with a ceramic build are all products of ASUS. Both of the latter Zenbooks include OLED displays. In the meantime, HP unveiled a new line of Dragonfly Pro laptops that are designed to simplify the purchasing process for customers by removing the majority of configuration options. The Windows version exclusively uses an AMD CPU and has a column of hotkeys on the right of the keyboard that provide shortcuts to camera settings, a control center, and 24/7 tech support, whilst the Dragonfly Pro Chromebook has an RGB keyboard and Android-like Material You theming capabilities. The last of these buttons can be programmed to open a particular program, file, or website.

The first of some audio news is now being presented to us, starting with JBL. The business presented its array of five soundbar models for 2023, all of which will support Dolby Atmos. New true wireless earbuds with a “smart” casing including a 1.45-inch touchscreen and controls for volume, playback, ANC, and EQ presets were also introduced. Nearly simultaneously, HP unveiled the Poly Voyager earphones, which are comparable to the JBL in terms of controls and have a touchscreen on the carrying case. However, the Voyager also features a Broadcast mode that enables you to connect the case to an older device with a headphone port (like while you’re on an airline) via the provided 3.5mm to USB-C connection, so you can view movies during a flight without having to bring along a second set of headphones.

Not only today but also the remainder of the week will see a ton more CES news. I was unable to tell you about Citizen’s latest wristwatch or Samsung’s new, more affordable Galaxy A14 smartphone. Keep checking back for updates on all CES 2023 news.