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Energy

Tesla is growing its workforce as rival carmakers cut jobs to catch up in the EV race 

The Tesla Model Y body shop in Fremont, CA. (Credit: Tesla)

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Tesla has a ton of things in the pipeline that will keep it busy for the foreseeable future — from building Giga Berlin, ramping the production of the Model Y in the US and China, rolling out the upcoming Cybertruck, Semi, and new Roadster, to further improving its core battery technology. In order to achieve these goals, Tesla has been on a hiring spree to acquire talent to boost its current workforce. In contrast, other carmakers have been cutting jobs as they start a difficult transition towards sustainable transportation.

“It’s hard to think of another company that has more exciting product and technology roadmap. So super-fired up about where Tesla will be in the next 10 years. If you look back 10 years from today to 2010, we will produce approximately 1,000 times more cars in 2020 than we produced in 2010… and we have also Solarglass and solar retrofit and Powerwall, Powerpack, all those things too. So where we will be in 10 years, very excited to consider the prospect,” Tesla chief executive and co-founder Elon Musk said during the company’s Q4 2019 earnings call.

Tesla Continues Its Push

Elon Musk has turned himself into a solar salesman and has kicked off 2020 by setting the stage for a Solarglass Roof installation ramp in the United States. Musk has also mentioned bringing the Solarglass Roof to other markets such as China and Europe. Aside from looking for roofers, it is also partnering with homebuilders and other residential industry players. Giga New York, where solar panels and other components are made, is also looking to add more employees to its workforce.

Tesla is also seemingly testing the waters to build Giga Texas, where it can potentially ramp the production of the Cybertruck and help its other facilities scale battery production. Amidst all this, Elon Musk has also announced that he will be hosting an AI hackathon to fish for talents who can potentially help accelerate the rollout of its Full Self-Driving suite.

Tesla Cybertruck and Tesla Semi with Elon Musk for Jay Leno’s Garage (Source: teslacybertruck | Instagram)

Across the pond, Tesla is busy trying to prepare an industrial property in Grunheide to begin the construction of Giga Berlin, which is poised to go online next year. This Tesla Gigafactory in Europe aims to produce 10,000 vehicles per week and it will need a 12,000-strong workforce to do that. Giga Berlin is currently looking for people to help them in construction, engineering, manufacturing, and operations.

In China, Giga Shanghai is aiming to ramp production of the locally-made Model 3, while starting its program for the Model Y. Tesla is even looking for designers that would help it produce a new vehicle Tesla for the local market and the rest of the globe. Job openings for Tesla China skyrocketed 118% between October last year to February 2020 and have seen a 376% jump in the past year, according to Thinknum Alternative Data’s report. While the coronavirus outbreak in China slowed down job postings recently, the overall hiring activity of the Palo Alto, California-based carmaker is on the upswing across the globe.

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Tesla is undeniably the leader in electric vehicles. Through the years, it has been trying to perfect its manufacturing processes, car software technology, and battery capacity. In fact, a recent Model 3 teardown by Nikkei Business Publications revealed that Tesla could be six years ahead of the competition on the hardware front. On the battery front, Consumer Reports recently validated its advantage over other carmakers, and we’re yet to hear the compelling story that will blow people’s minds Elon Musk promised come Battery Day in April.

Tesla Competitors Trying To Catch Up, But That’s All They Can Do — Try

While Tesla keeps on looking for new hires to help it bring its product and technology roadmap into fruition, other carmakers have been cutting jobs. As legacy automakers try to catch up on the electrification of its fleet, most of them need to lay off workers to free funds that they can use for research and development of technology that can come close to what Tesla has had for years.

Last December 2019, Daimler and Audi announced that it will cut 10,000 jobs as the major shift in vehicle technology happens. Audi is also getting rid of 9,500 jobs to free funds for its electrification efforts. Bloomberg News compiled data that revealed carmakers in Germany, the United States, and the United Kingdom are eliminating around 80,000 jobs as they reassess their current workforce in an era of electrification. In China, electric vehicle startup NIO also retrenched about 20% of its workforce. Asian automotive leaders Toyota and Honda have also cut costs to bolster research and development of electric cars and ride-sharing programs.

Tesla has had its own challenges but the company is definitely thriving now, as evidenced by its tangible lead in the EV space. For Q4 2019, Tesla posted revenue amounting to $7.38 billion, beating Wall Street’s estimates. Maintaining profitability, it was able to generate $1.1 billion of free cashflow in 2019. Its stock price also saw a meteoric rise recently propelling its market cap value to $169.16 billion on Feb. 19.

The striking contrast affecting the labor force of Tesla and other carmakers paints the difficult task of traditional automakers who seemed to have been caught flat-footed in a rapidly changing auto industry. Not that these giant car brands do not have the money, but Tesla is just way, way ahead in electrification. With all the activities on the side of Tesla, perhaps legacy carmakers should indeed be frightened.

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A curious soul who keeps wondering how Elon Musk, Tesla, electric cars, and clean energy technologies will shape the future, or do we really need to escape to Mars.

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Energy

Tesla Semi factory is getting a celebration nobody expected

Tesla will inaugurate its Nevada Semi factory September 24, five months after production quietly began ramping.

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Tesla says it will officially inaugurate its new Semi factory in Nevada next month. The Tesla Semi account posted the announcement on X, sharing a graphic titled “Semi Rollout” with a date of September 24. No further details were given about the format of the event or who would attend.

While Tesla’s dedicated Semi plant in Sparks, adjacent to Gigafactory Nevada, opened back in April, with the first trucks rolling off the high volume line on April 29, the timing for the factory inauguration comes at a surprise. The ribbon cutting event five months into production is a break from how Tesla has usually handled its other factories, where the first truck or car off the line typically served as the milestone moment.

The 1.7 million square foot factory was built as part of a $3.6 billion expansion Tesla announced in early 2023, and it shares a site with the battery cell lines that feed the Semi’s structural pack, a decision meant to remove the supply bottleneck that delayed the truck for years. The plant is designed for 50,000 trucks a year at full ramp. Semi program director Dan Priestley has said production “is now ramping” rather than claiming it has reached scale.

Nine years passed between the Semi’s 2017 unveiling and this stage of production, with the truck slipping from an original 2019 target through hand built pilot units for PepsiCo and a slow build out of the Nevada plant. An inauguration event now gives Tesla a stage to talk up that ramp and reset expectations for how many trucks it can begin delivering at scale.

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The September date also lines up with the Semi’s next milestone. Tesla confirmed the truck is heading to Europe with a full unveiling at the IAA Transportation trade show in Hannover, Germany, running September 15 through 20. Between the Nevada event and the Hannover reveal, Tesla has roughly a week and a half in September to make the case that the Semi is now a truck being built and sold on two continents rather than tested in a handful of fleets.

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Energy

Tesla launches Powerwall Lease for affordable home backup

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Credit: Tesla

Tesla Energy has introduced the Powerwall Lease in conjunction with Tesla Electric, making the service available in Texas. This new option delivers whole-home backup power using two Powerwall units for a net monthly cost of $35 after credits, accompanied by a low fixed electricity rate.

Under the lease terms, customers pay a one-time order fee of $100. The base lease payment for the two Powerwalls is approximately $122 per month during the first year, subject to a 3 percent annual escalator thereafter. Enrollment in a qualifying Tesla Electric Backup plan or Virtual Power Plant plan provides an $87 monthly credit.

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This credit lowers the effective cost to roughly $35 per month plus applicable tax.

Installation of the standard system carries no additional charge. The package features Storm Watch for outage protection and allows complete management through a single Tesla application. The system supplies continuous whole-home backup capability.

The Powerwall system enables households to maintain electricity during severe storms that disrupt the utility grid. When outages occur, the batteries automatically provide seamless backup power to the home.

Tesla announces 100k Powerwalls are participating in Virtual Power Plants

Tesla Storm Watch monitors weather forecasts and ensures the units are fully charged ahead of anticipated severe weather events so that power remains available throughout the disruption, keeping lights, refrigeration, and other essential systems operating without interruption.

Availability is restricted to select Texas locations where retail electric choice exists. Participants must lease exactly two Powerwall units and maintain continuous enrollment with Tesla Electric. Solar panels cannot be included under this particular lease arrangement.

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The monthly credit activates automatically once the system is installed, receives permission to operate, and enrollment is confirmed. To retain the credit, customers are required to stay enrolled in Tesla Electric and fulfill all program conditions.

Nonstandard installations that involve electrical upgrades or special permitting may lead to extra expenses and might impact eligibility for the credit, so be sure to check with either your installer or Tesla to ensure you will still qualify.

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Elon Musk

Inside Tesla’s secretive $10 Billion “Project Crystal Sun” filing

Tesla filed for a $10.1 billion Fort Bend solar factory, but the site isn’t confirmed.

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Tesla has filed paperwork in Texas for a second massive manufacturing project in the same week it locked down its chip fabrication site, this time for a $10.1 billion solar cell plant in Fort Bend County. The filing, submitted July 22 under the state’s Jobs, Energy, Technology and Innovation Act and first surfaced by Sawyer Merritt on X, lists an internal project name of “Project Crystal Sun” and targets a site off FM 762 and FM 1994 near Richmond, about 40 minutes outside Houston.

The application, prepared by Kroll Tax Services on Tesla’s behalf, spans five parcels totaling roughly 3,000 acres within the Lamar Consolidated Independent School District. Tesla wants a 10 year property tax limitation in exchange for the investment, split as $1.5 billion in real property and $8.6 billion in equipment and personal property. The company projects 9,712 permanent jobs once the plant reaches full operation, with 1,147 peak construction jobs during a build window running from this year through 2028 and commercial operations targeted for the first quarter of 2029.

Tesla is not fully committed to Fort Bend County yet. The filing states the company is weighing the site against an unnamed out of state alternative, and frames the tax abatement as what would make Texas competitive against that option. If the district and county decline the incentive, Tesla says it may build elsewhere.

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Tesla Megapack Megafactory in Texas advances with major property sale

The plant would handle the full solar cell production chain in one facility, according to the filing, covering wafer and ingot manufacturing, coating, metallization and printing lines, cell testing, automated material handling and cleanroom infrastructure. That scope points to Tesla vertically integrating a part of its supply chain it currently sources largely from overseas partners, mirroring the approach behind its expanding Megapack production in Brookshire, Texas, where Tesla has already built out two buildings for its grid battery business.

The timing lines up closely with Tesla and SpaceX’s other big Texas commitment this month. SpaceX confirmed its Terafab chip factory would land in Grimes County days before this filing surfaced, with construction on that $16.8 billion project starting almost immediately after local officials met with residents. Terafab is meant to produce the AI chips running Tesla’s Optimus robots and Full Self-Driving software, while a solar cell plant would feed a different part of the business, the panels and storage systems Tesla sells to homeowners, businesses and utilities, and increasingly needs to power its own data centers.

Musk has talked about building domestic solar manufacturing capacity before, tying it to the amount of power Tesla’s AI ambitions will require.

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