Tesla Unsure on Production, Rolls Out More Layoffs
March 8, 2019—Tesla has still not decided where it will manufacture the company's crossover SUV, the model Y, reported CNBC. The company plans to unveil the vehicle on March 14.
Employees say Tesla executives, including its president of automotive, Jerome Guillen, are wavering between two options for Model Y production. They are trying to decide whether Tesla should allocate space in the Gigafactory, the company's massive battery plant outside of Reno, Nev., or combine the Model S and Model X body lines at its car plant in Fremont, Calif., to make room to build the crossover SUVs, according to the report.
At the same time, Tesla is in the midst of extreme cost-cutting measures in its quest to become profitable, and to make its electric vehicles mainstream. Last week, the company announced it would move all vehicle sales online and close most of its retail stores, letting go of thousands of employees in the process.
One sales employee said Tesla has left workers in the dark about whether or not their stores are closing, and whether or not they will have a job when the transition to online sales is finished, reported CNBC.