While Tesla CEO Elon Musk is reportedly mulling layoffs, recent financial reports from U.S. automakers show the leading electric vehicle (EV) maker is lagging behind when it comes to the amount of revenue generated by each of his employees.
Tesla reported nearly $97 billion in revenue last year, which equates to just under $690,000 for each of its more than 140,000 employees.
For comparison, General Motor generated more than $1 million in revenue for each of its 163,000 employees in 2023, and Ford Motor raked in $937,000 for each of its 173,000 employees.
Investors have become increasingly concerned about weak demand for electric vehicles and increased competition after Tesla warned in January of “significantly weaker” sales growth this year.
As Tesla increasingly focuses on costs, the company has asked executives whether each of their employees’ jobs are critical, stoking fears of layoffs. Bloomberg News reported Wednesday.
Tesla stock gained more than 1% on Thursday and just over 2% on Friday, but the company has lost more than $180 billion in market capitalization so far in 2024. Tesla is now valued at $603 billion , just ahead of chipmaker Broadcom at $601 billion.
Tesla’s gross margins – once the envy of other automakers – declined in the December quarter to their lowest level since 2019. In the same quarter, its revenue rose 3% to 25 .17 billion, its slowest growth rate in more than three years.
While Tesla’s revenue per worker lagged behind GM and Ford last year, it improved from 2022, when it was $637,000. Tesla increased its global workforce by about 10% in 2023, according to a recent filing.
Wall Street tech heavyweights have laid off hundreds of thousands of workers over the past two years, eliminating some of the jobs they created during the coronavirus pandemic. In many cases, they continued to increase their sales.
Last week, Meta Platforms reported a 25% increase in revenue in the December quarter while simultaneously reducing costs and expenses by 8% after cutting more than 21,000 jobs since the end of 2022.
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