Musk is just using the economic uncertainty to do what a lot of tech companies have done in the past. Staffing levels generally rise at big companies so periodic layoffs are necessary to clear the dead wood that always accumulate at all companies. I don’t remember who it was, but one CEO was famous for laying off 5% annually, based on performance review “grades”. The bottom 5% of employees were let go with no warning or appeal. I think it was Siebel, before Oracle bought them.
I think there’s a storm coming. I’ve always thought Larry Kudlow seemed to have a pretty good read on the economy. He says we’re probably headed for a recession. We’ll see. Some could argue we’re already there.
RE: FORD
Shoring up the union vote for 2022 and 2024.
Maybe after the 2022 and 2024 elections, we’ll be able to buy our old fashioned gas cars. They’ve served us faithfully for 100 years.....and so has gas.
So Elon is making people come back to the office . . . so he can give them their pink slips.
I had that feeling starting on 11/3/2020. Sadly my gut was a little short of the actual abomination we’ve been hit with.
Musk is having a $ problem.
This isn’t a bad feeling about the economy.
The economy was in the crapper when he agreed to purchase twitter.
I think he had buyers remorse because he immediately started finding flaws to get the price down.
AFTER the public announcement of purchase.
The diff between he and Trump.. Trump does his negotions before agreeing to anything.
Elon got himself in a fix. Tried to use angry letter about remote work to cut down his workforce so it wouldn’t be seen as layoffs or company doing poorly.
He panicking. He known for that.
But it isnt because of the economy.
It’s his poor choices.
He’s a billionaire but it’s not because he’s good or wise with money. It’s because he has made good bets.
Fords E Truck for moving parts bin fleet duty has good reviews and demand and hits a price point where the white truck demand is highest. Extending the technology to box truck is the win, those trucks have abhortant operating costs.
With a 4-6 year lifespan and 12k / year depreciation + fuel is about the same as the gas or D models.
Most of the white trucks that never leave blacktop are 100 miles a day and returning to somewhere they can be charged, either the business owners home or the shop. Finally EVs hit a place where the utility of having 6500 Watts of outlets and ton of locking storage available is more upside than the 4 hour of charging downside.
I am not a fan of 200 mile EVs but the 400 mile EVs are to the point where they are worth consideration for fleet service within city limits. Let the average consumer middle class fred not be the one risking their once a decade purchase on unproven batteries.
My local Walmart is undergoing a huge retrofit. Taking all the old shelves and rotating them 90 degrees and getting rid of at least one of the WIDE main “price leader aisles” where they cram all the special stuff they want to move.
At first I thought they were only rotating the shelves but then I noticed they were REPLACING them. Replacing them with ones that are almost 2 feet higher where they can store more product on top to restock lower shelves. I also started looking hard at their aisle spacing. It’s narrower by a bit - enough to squeeze in another row or two.
I think they’re doing it to take advantage of any larger, unanticipated shipments they get and accommodate fluction....a sign of an unsure distribution system. I haven’t seen any numbers yet, but my guess is that those extra shelf heights and added rows will give them at least a 25% higher ‘warehouse’ capacity. On that note, the person responsible for the plan earned his/her pay, IMO.
STAGFLATION anyone - let the good times roll.
The economy is going to get much worse, count on it. The very high energy prices still have not filtered their way into pricing, that’s going to be another significant wake up call.
It’s possible that even Brandon knows this. In case you haven’t heard a while back he asked the Saudis to pump more oil. The gave him the middle finger because he went overboard to condemn them after the (not a journalist) Khassoggi was killed.
Now he’s planning a trip, they told him to come kiss the ring if they wat more output. Brandon knows we’re in for an energy crisis of epic proportions if he doesn’t kiss and make up.
He refuses to increase domestic supply for one reason, politics.
“High revenue growth at all costs...”
In other words, company growing by leaps and bounds with corresponding losses. The only reason these dogs ever got funding was investor stupidity due to 0$ Fed rate. These losers should never have had their stock purchased to bein with. They are going to zero.
Tesla made a huge capital investment in China to produce EVs. Thus far they have not been able to extract from China any hard currency profit as a return on investment. The Chinese also became privy to all their proprietary information. Tesla has always been an unusual company. Musk has been risking much alienating Biden. Suspect if the SEC and the DOJ really investigated what and how this publicly traded company did and reported, it would not be hard to find a few crimes.
But, But, But, we’re all just about to buy electric cars.
Hell he aint the only one and I need no statistics to figure that out!
Wonder how this development is going to affect Governor UnKEMPt of Georgia’s plans to double down and fund a new Electric Car Plant for Rivian whose stock price has tanked in the past 2 months.
A lot of kickback money to politicians and insiders is in the balance. I’m sure he’ll push as hard as he can, taxpayers be damned.
“Everyone at Tesla is required to spend a minimum of 40 hours in the office per week … If you don’t show up, we will assume you have resigned.”
I have never met Elon Musk and all I know about him is based on what I read online, but I respect the hell out of the dude. He speaks his mind and doesn’t mince words.
Very unfortunate the majority of US CEOs and corporations have gone woke. What a sad situation. An immigrant from South Africa has more courage, self-respect and a stronger personal constitution than all the other Fortune 500 CEOs combined. He embodies all that made our nation strong, prosperous and the global leader in innovation.
How far we have fallen. Most the pity.
“This market is not rewarding high revenue growth at all costs. You’re being rewarded from improvement in return on investor capital and free cash flow generation,” Peter Garnry”
I wonder what impact this will have on wokeness? Maybe some companies will realize their job is to make money for the shareholder and not to coddle a bunch of queers and other assorted freaks?