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SpaceX lays off 10% of staff by email as Falcon Heavy, BFR, and Starlink ramp up

COO and President Gwynne Shotwell and dozens of SpaceX employees were present in mid-December to show elected stakeholders SpaceX's Crew Dragon spacecraft and Falcon 9 rocket. (SpaceX)

Published

8 years ago

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In an unusual move for a privately-held company that raised $500M-750M in the last six months alone and is the 2nd or 3rd most-valuable VC-backed entity in the United States (~$30B), SpaceX abruptly announced a decision to lay off ~10% of its workforce of 7,000+, effective immediately as of January 11th.

Although layoffs are often a necessary evil in particularly competitive industries or underperforming companies, SpaceX is not exactly a strong fit for either characteristic. The company also opted for a truly bizarre and impersonal layoff method so unfriendly that several employees described it feeling like a corporate “Hunger Games” or a “purge”.

https://twitter.com/seanbhart/status/1084139223760945152

Over the past six or so months, a number of reports – most recently confirmed by SEC filings showing ~$270M of $500M raised – noted that SpaceX was seeking considerable investment and capital influx in the form debt (a leveraged loan) and equity sales to the tune of $250M (loan) and $500M (equity) after some back and forth with investors and banks and additional fine-tuning. The terms of SpaceX’s 2018 fundraises are unknown but Bloomberg did acquire information suggesting that the company was only profitable or break-even with after a range of very specific and dubious accounting decisions. Put more bluntly, SpaceX did not demonstrate actionable profitability to investors during their 2018 pitches.

“[SpaceX showed] positive earnings before interest, taxes, depreciation, and amortization of around $270 million for the twelve months through September … But that’s because it included amounts that customers had prepaid and because it excluded costs related to non-core research and development. Without those adjustments, earnings for the period were negative.” – Bloomberg, 19 November 2018

However, the fact of the matter is that SpaceX’s profitability is and has long been nearly irrelevant as long as the company was still able to convince investors that it was wisely investing its funds in potentially revolutionary present and future projects like Falcon Heavy, reusable rockets, BFR, and Starlink. Essentially, if SpaceX could show that they could be profitable if they wanted to be, investors were willing to swallow unusual risks in return for prestige and a potentially vast payout down the road. The decision to lay off 10% of the company’s workforce immediately after raising anywhere from $500-750M could indicate that layoffs were either directly or indirectly related to the terms of its fundraising rounds.

Notably, some basic back-of-the-napkin estimates would suggest that cutting 10% (say 700-800 employees) at an average salary (or equivalent hourly pay) of ~$90K/year* with an average overhead of 30% would reduce SpaceX’s operational costs by $80-100M annually, potentially enough to sway the above financial account enough to show a small annual profit or at least allow the company to break even. Put frankly, $80-100M per year is not nearly enough to plausibly fund SpaceX’s BFR and Starlink development programs at anything close to the ambitious schedules CEO Elon Musk has laid out for the company, including orbital BFR launches as early as 2020 and getting Starlink to initial operational status around the same time (2020-2021).

 

However, saving ~$100M annually might be enough to sway investors that are less prestige-hungry and more conservative to bet on a successful but still relatively high-risk launch company. To be even more generous, one could assume that ~800 employees were strategically cut to remove entire internal groups or departments no longer needed, perhaps doubling or tripling the annual savings to $200M-$300M, still not even close to enough money to fund more than 10-20% of expected BFR and Starlink capex.

In September 2018, CEO Elon Musk estimated the new rocket would cost ~$5B to develop (no less than $2B, no more than $10B) on its own, entirely excluding the $10B COO/President Gwynne Shotwell estimated SpaceX’s Starlink satellite internet constellation would cost to complete in April 2018. Working on profits of less than $300M a year, it would take SpaceX decades of stable earnings to foot that collective $12B-20B bill.

“To continue delivering for our customers and to succeed in developing interplanetary spacecraft and a global space-based Internet, SpaceX must become a leaner company. Either of these developments, even when attempted separately, have bankrupted other organizations. This means we must part ways with some talented and hardworking members of our team. We are grateful for everything they have accomplished and their commitment to SpaceX’s mission. This action is taken only due to the extraordinarily difficult challenges ahead and would not otherwise be necessary.” – SpaceX, January 11

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* (Source: Payscale)

At least 1 in 10 employees seen here were likely fired on Friday, January 11th. (SpaceX)

A new level of “counterintuitive”

Regardless of whether SpaceX had sincere and angelic motivations for these layoffs (it’s nearly impossible to know), the single most unpleasant aspect of the whole ordeal is how the company managed it and communicated with employees. According to comments and hints from a dozen or more employees, the process began with next to no official warning around lunchtime on Friday, January 11th. Employees attended an all-hands meeting where they were told in frank terms that a major portion of the company – those deemed to be lower performers – would be laid off within 24 hours. All 7000+ employees were told around the same time.

The catch: nobody was told who exactly would be cut – instead, SpaceX would force every single employee to leave work early on Friday and spend 12-24 hours in total uncertainty until an unspecified time on Saturday, when they were – in theory – supposed to receive an email telling them whether or not they still had a job waiting for them on Monday. In many cases, workers were forced to call a number provided by SpaceX and ask the company themselves if they still had jobs, not even receiving the absolute minimum courtesy of some sort of call or notification. Whether the given employee was five months or five years senior, the process was identical – ~24 hours of avoidable existential uncertainty followed by an automated email or phone call that you had to make yourself.

Nobody was offered a clear explanation as to why they were chosen out of all SpaceX employees. Workers who had given their heart, soul, blood, sweat, and tears to SpaceX for more than half a decade were – very literally – fired over email without the simplest explanation and told to not return to work unless returning company property, effective immediately. Thanks to California’s WARN Act protections, all laid off employees in California will thankfully be paid for two additional months (until March 11, 2019) to support job searching and re-training.

 

It’s impossible to know who exactly within SpaceX thought this method of layoffs was preferable to something at least a modicum more humane. It’s equally unclear why these layoffs are happening now, and SpaceX’s official statement appears to be an unsatisfactory half-answer at best. To the 90% that remain, one can only wish them the best and hope that those 10% cut from the company were not all as essential as some of them seem to have been. In the meantime, it appears that SpaceX will continue to push ahead in attempts to improve Falcon 9 reusability, field the next Falcon Heavy, build out and launch Starlink, and develop BFR.

Some of those at SpaceX responsible for enabling the company’s many, many extraordinary achievements hopefully still remain and will be able to ensure that the company keeps heading down the right paths in spite of major speedbumps like this. If you or anyone you know knows someone who works at SpaceX or have been inspired by the company’s mission and many successes in spite of the odds, make sure to be cognizant and appreciative of the tens or hundreds of thousands of rewarded (and unrewarded) hours of hard work that go into every single major and minor SpaceX achievement. To any employees reading, thank you for your dedication and keep fighting the hard fight.

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Eric Ralph is Teslarati's senior spaceflight reporter and has been covering the industry in some capacity for almost half a decade, largely spurred in 2016 by a trip to Mexico to watch Elon Musk reveal SpaceX's plans for Mars in person. Aside from spreading interest and excitement about spaceflight far and wide, his primary goal is to cover humanity's ongoing efforts to expand beyond Earth to the Moon, Mars, and elsewhere.

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Cybertruck

Tesla’s most delayed Cybertruck feature is finally here

Tesla finally links Cybertruck Powershare with Powerwall 3 for extended home backup after years overdue.

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10 hours ago

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September 10, 2026

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Tesla’s Cybertruck can now pair with a Powerwall 3 to keep a house running longer during an outage, a feature the company first promised when the truck launched in November 2023.

The official Cybertruck account posted the update on X Thursday: “Powerwall 3 & I can now power your house together. This extends your home backup by over 3 days, equivalent to 9 additional Powerwalls,” Cybertruck lead engineer Wes Morrill confirmed the rollout separately, calling it the first time a vehicle and a home battery have worked together this way. Powerwall 2 and Powerwall+ compatibility is still coming later this year, per both the Cybertruck account and Morrill.

Powershare itself is not new. Tesla enabled the version that lets Cybertruck power tools, appliances or another EV through its bed outlets when the truck launched in 2023. Home backup through a Powershare Gateway and Universal Wall Connector arrived in 2024, and Tesla extended that support to homes with solar the following year. What has been missing until now is Powershare working alongside an existing Powerwall, instead of functioning as a separate backup source competing for the same job.

The pairing matters because a single Powerwall home battery typically covers a home for about a day, less if usage is heavy or the outage stretches into a heat wave or freeze. A second Powerwall for more backup storage costs several thousand dollars installed. A Cybertruck instead uses a battery the owner already has, one large enough here to add roughly three more days of backup without mounting another unit or booking an installer visit. For households in wildfire, hurricane or winter storm regions where outages run past a day, that keeps the refrigerator and medical equipment running instead of shutting down.

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Tesla provides Cybertruck Powershare release update

The company told owners in October 2024 that Powerwall integration was coming sometime in 2025. That date passed, and in December 2025 Tesla pushed the target to mid-2026, with Morrill explaining at the time that two grid-forming devices need to negotiate which one manages a home during an outage, and that certifying the process across multiple generations of Powerwall took longer than expected.

For owners who bought Powershare hardware expecting it to work with whatever battery setup they already had, Thursday’s update closes a gap that has shown up repeatedly in owner complaints since Cybertruck deliveries began. Tesla has also rolled out a separate Powershare grid support program in Texas, letting Cybertrucks send power back to the grid during high demand events, so the truck’s role in a home’s energy setup keeps expanding even as individual pieces of it arrive later than promised.

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Tesla ruined other cars for me: one year Model Y ownership review

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21 hours ago

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September 10, 2026

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Credit: Joey Klender

I picked up my Tesla Model Y one year ago, on August 30, and for roughly a year, I have had this vehicle prove to me that any other carmaker’s product is ruined for me forever.

One year and over 16,000 miles later, the Tesla Model Y is easily the best car I’ve ever had. Of course, everyone always says that about the car they currently drive, but for the longest time, I truly believed some of the other cars I drove — my 1998 Volkswagen Jetta K2, or my 2008 Ford Escape Hybrid — would never be topped.

Most of this was due to nostalgia, but dependability also played a role.

My Tesla has taken over the number one spot. Everyone I talk to about my car always has a lot of questions, and they’re usually the same ones that someone else asked me: “Is it really so cheap to drive?” “How much does it cost to charge?” “Does it really drive itself?” “How long is the warranty on your battery?”

I never mind answering those questions because it is an opportunity to educate someone on EVs. There are a lot of things about EVs that I hear from people, and I can’t help but chuckle at times. However, I hope this review clears some of those things up, because I truly want everyone to know how great this vehicle really is.

How my Tesla has changed my life

I was in two car accidents in high school, and I was a passenger in both. I am very happy I went through those as a teenager, because if I didn’t, I think I’d probably be much less aware of the road, how other drivers are so unbelievably unaware of others, and how inconsiderate most drivers are.

I’ve always considered myself a good driver because I was always taught to be defensive. Because of those two accidents, I am a tad jumpy in passenger seats, even with people like my parents, who drove me around for 16 years before I got my Learner’s Permit. On a drive home from Florida to Pennsylvania with my Dad two years ago, he actually told me at one point to “stop being so jumpy.”

Truth is, I trust my Dad behind the wheel more than anyone. But the older I’ve gotten, the more I just prefer to drive myself.

That is, until I met my Tesla and Full Self-Driving. I still remember the first drive I took after taking delivery: I immediately typed in my Fiancèe’s (my wife in 30 days!!!) favorite lunch spot, picked up her favorite meal, and pulled into the hospital where she delivers babies. I can remember thinking after 15 minutes, “Okay, that’s enough for me; I’ll drive manually now.”

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Over the next 2-3 weeks, that length of time slowly but steadily increased. Every passing week, I got a tad more comfortable with the car driving me. Now, I have had FSD log 75% of my 13,000 miles since v14. I barely drive my car manually, and that’s exactly how I like it.

My Tesla has changed the way I drive and how I choose to travel.

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In the past, I was always one of those anxious drivers, overly concerned about the parking situation, never wanting to drive in cities, and avoiding anything that made me a little uncomfortable when on the road. FSD has changed that completely.

It has made traveling fun, driving less stressful, and parking a non-issue. I truly love this car and what it has done for me and my driving anxiety.

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Maintenance and Cost Savings

A buddy of mine who took delivery of a Model Y right after me, also his first EV, texted me yesterday and said, “When do I take this thing for service? I don’t even know what it needs.”

This year I have spent $67.41 on service for my car:

  • Free Front Camera Housing Cleaning
  • $65 for a Tire Rotation at home from Tesla (easily avoidable if I just would have gone to a tire place or did it myself, but it was less than 20 degrees outside and the Service Tech did it at 7 am while I was asleep)
  • $2.41 on a jug of Windshield Washer Fluid at Sheetz with my reward points

No spark plugs, no oil changes, no anything. Combine it with what you save on charging at home, and my ownership experience overall has been relatively cheap. I pay no more than I did for my Bronco for the car payment (around $400 per month), and my insurance went up about $60, but within the first four months I was given a safe driving discount by my agent. This brought it to about a $40 increase.

Now let’s factor in what I’ve saved in gas for the year:

According to my Charge Stats in the Tesla App, I’ve saved $836 over the course of the year by driving a Tesla over an ICE vehicle. If you look at the graph, you’ll notice my Supercharger utilization dropped significantly in April, which makes sense.

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This is when I started charging at home. Those savings would likely be closer to $1,500 if I had been charging at home all along.

Real-World Range

I never reset any Trip on my Tesla when I bought it, so all of these efficiency stats are for the life of the vehicle thus far through 16,063 miles.

My Tesla has a lifetime average of 260.1 Wh/mi (watt-hours per mile), which equates to 3.84 mi/kWh (miles per kilowatt-hour). This is pretty average, and I know I could be more efficient, but I use climate control liberally (it’s always on, even if the windows are down), and I love to let FSD drive me around in Hurry Mode.

Even when I’m driving manually, it’s because I’m on a dry, windy road and I want to take advantage of the awesome suspension and damping that the Model offers. Driving that car on a back road with some twists is one of the most fun things to do.

To achieve really excellent range and efficiency ratings, you really have to be more conservative with some things, and those are sacrifices I’m personally not willing to make. I want the A/C or Heat on, and I occasionally will increase drag by driving with the windows down.

I prefer Hurry mode on FSD, and I’m willing to sacrifice a few miles of range for that certain style of driving.

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Interior, Visibility, Accessories, and More

My Favorite Interior Ever

The Model Y interior, like every Tesla interior, is not for everyone. Personally, I was never a fan of the minimalistic approach prior to ownership. As ridiculous as it is, I liked a simple knob for adjusting the temperature and fan speed. Even so, to this day, it takes me longer to pull up the climate settings to adjust things in my Tesla than it ever did in cars with a million knobs and buttons.

I can’t tell you how many times my finger has missed the On/Off button on the climate screen in the Model Y because of dips, bumps, turns, and just normal movement during operation. Do I like the way things are controlled in my Tesla? Yes, of course. Plus, Grok is so integrated into the car now that I could truly never have to touch the screen again for anything other than starting Self-Driving.

However, I still find that there are valid arguments for people who like knobs and buttons. As ugly as it might be to me now, I think it is a tad more intuitive because it’s much harder to miss and much easier to make a quick adjustment than with a touchscreen.

With that being said, the touchscreen is great. It is so responsive and is as good as using an iPhone. There is no delay like most automotive touchscreens, where it feels sort of clunky for 2026.

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I love to watch TV and Movies or YouTube on it when I’m parked anywhere. My Fiancèe and I have made it a date night several times over the past year: we’ll pick a spot to eat, get it to go, and enjoy it in the car while watching something. It’s great in the Fall when the leaves are turning orange.

The interior is, overall, a great part of the car. It’s very easy to keep clean, and when it’s clean, it truly feels like you’re in a spacecraft. It is one of the coolest interiors out there, maybe not as luxurious as some high-end Mercedes-Benz or BMW models, but it has a clean and simple feel that is better than many cars in its weight class.

I will say I do miss the Textile seats of the Model Y Standard, but I do not miss them when I am hot. I would still take the Vegan Leather because of the ventilated seats.

Rear Window Visibility is Pointless

If you like a rear windshield, just be aware of the fact that the Model Y basically does not have one. It almost feels pointless to be there, and the Model Y L has something that is much more “standard” in terms of rear windshields in a crossover/SUV:

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It doesn’t mean much to me because the rear camera is great. However, I have found myself just annoyed with the fact that it’s even there to begin with.

Accessories I Bought

I went for 3D MaxPider car mats throughout, some center console storage, trunk storage, and matching window tint on the front windows. I also bought Tesla’s Pet Liner, which is great because it comes with door coverage and a bit of a barrier. My pup, Finn, climbs right over it and prefers the front seat, so I fold it in half, and it still covers the passenger seat very well:

They’re all pretty standard accessories, but the one thing I use the most is actually this phone mount from Amazon.

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It’s great for making FSD content for TikTok or throwing my phone on it just to hold. I never use it to watch anything (I’m wildly against that concept), and I usually use the wireless charging mat that comes standard. It is really great and convenient, and the magnet is super strong.

Cabin Noise, Sound System Quality

The Model Y Premium comes with acoustic-lined glass, which really dampens a lot of the road noise. My car has one of the quieter cabins I’ve ever been in. I can still remember my 2008 Escape Hybrid and how loud it was in there; I thought my Tesla would be that way, but boy was I wrong.

It is such a peaceful ride that even sitting at stoplights behind loud, obnoxious Hondas with shopping cart handles as spoilers does not bother me. A buddy of mine in a 2021 Model Y said upon his first ride in my car that it was a “night and day” difference between the two.

As far as the sound system goes, two of the more outgoing people in my life who love loud music and concerts recently said to me that “the Tesla is quite a time” because of how immersive the listening experience is. The bass is excellent; the ambient lighting truly rounds out the experience.

Even my Dad, who is somewhat of a speaker snob (I can remember going to Tweeter as a boy with him to look at receivers, and he’s always had massive speakers in the house for cranking up some music) has commented on how good the sound quality is. I remember when I bought a Honda Civic a few years ago- his first ride in it- he said, “Damn, the speakers in here suck.”

He wasn’t wrong. They were awful. But in the Tesla, they’re damn good.

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Should you buy a Model Y?

Look, I will recommend this car to anyone who asks. I tell my friends constantly that I love my Model Y so much, especially because it just gets better and better over time.

But I also understand the skepticism. I’ll admit one of the most disappointing things about this car is how much range I lose in the winter. In a 40-mile round-trip drive to get wings with some friends in January, I lost 120 miles of range. This is something that would not deter me from buying this car, but at the time, I also didn’t have home charging. Ownership, at that point, was a bit of a pain in the butt.

The thing is, to me, it’s still better than driving a gas car. I just have more fun in a Tesla.

A friend of mine recently bought a new car, and she said she went with a Chevy Equinox because it was a larger vehicle and she has a child. I told her, “I don’t think I’ll ever buy anything other than a Tesla. Once you go Tesla, you never go back.”

“I cannot afford a Tesla,” she said. We all know the ridiculous narrative around Tesla pricing by now, and after she found out how much I pay for my car and the fact that it has the IIHS Top Safety Pick+ rating, she admitted she probably would have done the same if she had known. I wish she would have asked.

The only car I would take over mine is the Cybertruck. And right now, I just can’t afford a Cybertruck, so I’ll stick with the Model Y. I am so satisfied with my pick, and I would buy this car time and time again.

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Elon Musk

Elon Musk rips ABC News over fatal NYC Tesla crash report

Musk pushed back on NYC Tesla crash coverage, pointing to a pattern of premature blame.

Published

1 day ago

on

September 9, 2026

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Elon Musk pushed back overnight against media framing of a fatal Tesla crash in Midtown Manhattan, telling a user on X that “it wasn’t the car” and that the vehicle’s Autopilot system had nothing to do with the wreck.

The crash happened just before 3 a.m. Wednesday, when a 2024 Tesla Model Y struck a sidewalk shed outside 315 Madison Ave., a bus stop pole and a mailbox on East 42nd Street, according to the NYPD. The car kept moving several more blocks before stopping near Second Avenue. Both women inside, each 27, were taken to Bellevue Hospital, where the passenger was pronounced dead. The driver was charged with vehicular manslaughter, driving while ability impaired and leaving the scene of an accident.

Police have not attributed the crash to Autopilot or Full Self-Driving in any public statement. The charges point to impairment, not software. Musk’s response followed a since-deleted ABC News post that he said mischaracterized the incident. Replying to a user on X, Musk wrote that if Autopilot had been engaged, “they would not have crashed,” and added that “the legacy media will never forgive Tesla for failing to advertise with them,”

It’s a familiar cycle for Tesla. In June, headlines from several national outlets described a fatal crash in Katy, Texas, as happening while the car was “on autopilot,” based on the driver’s own account to police after his Model 3 struck a home and killed a 76-year-old woman. Tesla’s data told a different story when Ashok Elluswamy, Tesla’s head of AI, said the driver had pressed the accelerator to 100% and reached 73 mph in a residential zone. Harris County prosecutors later confirmed the human override and the driver was charged with manslaughter.

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Florida Gov. Ron DeSantis pointed to that same Katy crash last month to argue that outlets routinely name Tesla in crash headlines while leaving other automakers unnamed, even after a driver’s own actions are shown to be the cause. A similar pattern played out in 2024, when Musk had to clarify that FSD was never even downloaded onto the Model 3 involved in a fatal Colorado DUI crash, despite a passenger’s claim that an “auto drive feature” was in use.

Tesla has not issued a separate statement on the Manhattan crash beyond Musk’s posts on X. The NYPD’s investigation is ongoing, and no cause for the driver losing control has been released.

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