Tesla justifies its low revenues… by layoffs!

Struggling with its too low margins, Tesla has seen its stock market valuation collapse by 80 billion dollars. But there’s a shocking argument…

Presenting layoffs as an investment for the future is a bold move that few car manufacturers would risk. But at Tesla, anything goes.

In its financial report for the first half of 2024, there is indeed a line dedicated to the restructuring of Tesla and the infamous mass layoffs announced at the beginning of the year. The idea was to please the financial markets, concerned about the near-total loss of profitability at Tesla, and thus regain a bit of altitude for the balloon. It is revealed that Tesla set aside around 622 million dollars in the first six months of the year to fund the layoffs.

But the blunder lies elsewhere: Tesla justifies its poor financial performance by citing the costs associated with this restructuring, and thus already promises better results in the future once freed from this “burden”.

The Humanoid Robots Instead

Another surprising point; it seems that Tesla has downplayed the cost of its layoffs, estimating them at 350 million dollars. This nearly doubling weighs heavily on the earnings per share that are then distributed to shareholders. Evidence that laid-off employees are pushing back and obtaining much better exit conditions… but also that legal proceedings are costly with various attorney fees.

Tesla is not just eliminating jobs: Elon Musk proclaims that these positions will be replaced by Optimus humanoid robots by 2025, with a ramp-up in the coming years. This promises much better financial results in the future, as a robot will cost less, will never be unhappy, ill, on vacation, troubled by family life, or simply less efficient with age. No salary, no retirement, no health insurance, or anything else.

Let’s be cynical in turn: who will buy cars if income-less citizens no longer need to go to work? The real problem, beyond Tesla, is the ripple effect. After artificial intelligence threatens Western companies, replacing workers with robots will spread everywhere. BMW has followed suit and is already aiming to do the same. “Have kids!“, but just know that they will be unemployed.

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