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The EV industry is on some rocky footing these days, and it’s being reflected in a number of of dramatic and dynamic shifts for automakers. Meanwhile, ever-adaptable dealers remains optimistic as they embrace incentives and increased electric options for buyers.
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Tesla’s Lay-Offs
Barron’s
Tesla is grappling with significant internal challenges as well as slowing market conditions, which is leading to some dramatic adjustments:
Trimming the Team — As announced by CEO Elon Musk, Tesla plans to cut over 10% of its global workforce (around 14,000 employees) as part of a strategic move to streamline operations. Referring to the job cuts, he wrote: “There is nothing I hate more, but it must be done. This will enable us to be lean, innovative and hungry for the next growth phase cycle.”
Executive Exit — Drew Baglino, Tesla's head of powertrain and energy engineering and a long-time executive, is stepping down. His departure is particularly notable as he has been a significant figure at investor events and was expected to expand his role, not exit the company.
Shares Slide — Yesterday, Tesla's stock fell by 3.5% in early trading starkly contrasting gains in the broader market indexes like the S&P 500 and Nasdaq, which were up by 0.4% and 0.3%, respectively.
Efficiency Examined — Tesla ended 2023 with just more than 140K employees, and shipped about 1.8M vehicles. That means Tesla shipped about 13 vehicles for each employee. In comparison, General Motors shipped 38 vehicles per employee, and Ford shipped 25.
Dealer Incentives — Kia is providing dealers with a $1,000 bonus for each 2023 EV6 sold and a higher $1,500 for every 2023 EV6 GT model they move. For the 2024 models, the incentive is $500 per EV6 or EV9, plus an additional $250 for each plug-in hybrid sold.
Sales Strategy — These incentives are part of Kia’s April 2024 Dealer Flat Cash Program, aimed at boosting sales and making room for newer models.
Despite ongoing efforts to revitalize its sales and dealer network, Fisker is still stressing over major financial challenges as it faces a potential bankruptcy:
Desperate Times — Fisker reported a $463M loss in Q4 of 2023, and is set to be delisted from the New York Stock Exchange by April 22 due to financial instability.
Desperate Measures — In a bid to stimulate sales and clear inventory, Fisker recently slashed prices significantly on its 2023 model year vehicles, with reductions up to $24K.
Keeping the Faith — Despite the challenges, Fisker continues to expand its dealer network. They recently added new partners in Florida, Denmark, and Austria, bringing their total dealer partners to six in the U.S. and twelve in Europe.
