Energy
Tesla is growing its workforce as rival carmakers cut jobs to catch up in the EV race
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.
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.
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.
Energy
Tesla Energy celebrates one decade of sustainability
Tesla Energy has gone far since its early days, and it is now becoming a progressively bigger part of the company.
Tesla Energy recently celebrated its 10th anniversary with a dedicated video showcasing several of its milestones over the past decade.
Tesla Energy has gone far since its early days, and it is now becoming a progressively bigger part of the company.
Tesla Energy Early Days
When Elon Musk launched Tesla Energy in 2015, he noted that the business is a fundamental transformation of how the world works. To start, Tesla Energy offered the Powerwall, a 7 kWh/10 kWh home battery system, and the Powerpack, a grid-capable 100 kWh battery block that is designed for scalability. A few days after the products’ launch, Musk noted that Tesla had received 38,000 reservations for the Powerwall and 2,500 reservations for the Powerpack.
Tesla Energy’s beginnings would herald its quiet growth, with the company later announcing products like the Solar Roof tile, which is yet to be ramped, and the successor to the Powerwall, the 13.5 kWh Powerwall 2. In recent years, Tesla Energy also launched its Powerwall 3 home battery and the massive Megapack, a 3.9 MWh monster of a battery unit that has become the backbone for energy storage systems across the globe.
Key Milestones
As noted by Tesla Energy in its recent video, it has now established facilities that allow the company to manufacture 20,000 units of the Megapack every year, which should help grow the 23 GWh worth of Megapacks that have already been deployed globally.
The Powerwall remains a desirable home battery as well, with more than 850,000 units installed worldwide. These translate to 12 GWh of residential entry storage delivered to date. Just like the Megapack, Tesla is also ramping its production of the Powerwall, allowing the division to grow even more.
Tesla Energy’s Role
While Tesla Energy does not catch as much headlines as the company’s electric vehicle businesses, its contributions to the company’s bottom line have been growing. In the first quarter of 2025 alone, Tesla Energy deployed 10.4 GWh of energy storage products. Powerwall deployments also crossed 1 GWh in one quarter for the first time. As per Tesla in its Q1 2025 Update Letter, the gross margin for the Energy division has improved sequentially as well.
Tesla Energy shined in what was a weak delivery report for the first quarter, as the company’s frequently-forgotten battery storage products performed extraordinarily well.
Tesla reported its Q1 production, delivery, and deployment figures for the first quarter of the year, and while many were less-than-excited about the automotive side, the Energy division performed well with 10.4 GWh of energy storage products deployed during the first quarter.
This was a 156 percent increase year-over-year and the company’s second-best quarter in terms of energy deployments to date. Only Q4 2024 was better, as 11 GWh was recorded.
Tesla Energy is frequently forgotten and not talked about enough. The company has continued to deploy massive energy storage projects across the globe, and as it recorded 31.5 GWh of deployments last year, 2025 is already looking as if it will be a record-setting year if it continues at this pace.
Tesla Megapacks to back one of Europe’s largest energy storage sites
Although Energy performed well, many investors are privy to that of the automotive division’s performance, which is where some concern lies. Tesla had a weak quarter for deliveries, missing Wall Street estimates by a considerable margin.
There are two very likely reasons as to why this happened: the first is Tesla’s switchover to the new Model Y at its production facilities across the globe. Tesla said it lost “several weeks” of production due to the updating of manufacturing lines as it rolled out a new version of its all-electric crossover.
Secondly, Tesla could be facing some pressure from pushback against the brand, which is what many analysts will say. Despite the publicity of attacks on Tesla drivers and their vehicles, as well as the company’s showrooms, it would be safe to assume that we will have a better picture painted of what the issue is in Q2 after the company reports numbers in July.
If Tesla is still struggling with lackluster delivery figures in Q2 after the Model Y is ramped and deliveries are more predictable and consistent, we could see where the argument for brand damage is legitimate. However, we are more prone to believe the Model Y, which accounts for most of Tesla’s sales, and its production ramp is likely the cause for what happened in Q1.
In what was a relatively bleak quarter, Tesla Energy still shines as the bright spot for the quarter.
Tesla has chosen the location of its latest manufacturing project, a facility that will churn out the Megapack, a large-scale energy storage system for solar energy projects. It has chosen Waller County, Texas, as the location of the new plant, according to a Commissioners Court meeting that occurred on Wednesday, March 5.
Around midday, members of the Waller County Commissioners Court approved a tax abatement agreement that will bring Tesla to its area, along with an estimated 1,500 jobs. The plant will be located at the Empire West Industrial Park in the Brookshire part of town.
Brookshire also plans to consider a tax abatement for Tesla at its meeting next Thursday.
The project will see a one million square-foot building make way for Tesla to build Megapack battery storage units, according to Covering Katy News, which first reported on the company’s intention to build a plant for its energy product.
CEO Elon Musk confirmed on the company’s Q4 2024 Earnings Call in late January that it had officially started building its third Megapack plant, but did not disclose any location:
“So, we have our second factory, which is in Shanghai, that’s starting operation, and we’re building a third factory. So, we’re trying to ramp output of the stationary battery storage as quickly as possible.”
Tesla plans third Megafactory after breaking energy records in 2024
The Megapack has been a high-demand item as more energy storage projects have started developing. Across the globe, regions are looking for ways to avert the loss of power in the event of a natural disaster or simple power outage.
This is where Megapack comes in, as it stores energy and keeps the lights on when the main grid is unable to provide electricity.
Vince Yokom of the Waller County Economic Development Partnership, commented on Tesla’s planned Megapack facility:
“I want to thank Tesla for investing in Waller County and Brookshire. This will be a state-of-the-art manufacturing facility for their Megapack product. It is a powerful battery unit that provides energy storage and support to help stabilize the grid and prevent outages.”
Tesla has had a lease on the building where it will manufacture the Megapacks since October 2021. However, it was occupied by a third-party logistics company that handled the company’s car parts.
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