Elon Musk, the billionaire CEO of both electric car company Tesla and space tourism company SpaceX, is on a job-cutting spree this year.
All Tesla sales will be moved online, according to an email Musk sent employees this week. Thus, many physical dealerships will be closed and more jobs lost.
Last year, 78% of all Model 3 orders were placed online, rather than in a store, and 82% of customers bought their Model 3 without ever having taken a test drive. ~ Elon Musk
The move is projected to reduce the cost of their Model 3 by 6%. The electric vehicle carries a retail sticker of $35,000.
This comes after Tesla cut workforce by 7% in January. source
There are concerns that aggressive layoffs will hurt the quality of their product.
Consumer Reports can no longer recommend the newest Tesla—the Model 3 electric sedan—because members say they’ve identified a number of problems with their cars, including issues with its body hardware, as well as paint and trim. ~ Consumer Reports
Further, employee morale is down at Tesla, with a whopping 77% of employees concerned about layoffs.
Musk fired 10% of SpaceX employees in January as well. source
In February, Musk left his position of OpenAI to focus on numerous problems at both Tesla and SpaceX. source