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Audi and BMW employees face job cuts, reduced bonuses amid scramble towards EVs

(Credit: https://www.whichcar.com.au/)

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German automakers Audi and BMW are facing painful cutbacks as each company attempts to accelerate its efforts towards electromobility. Based on recent reports, Audi will be engaging in drastic job cuts that would reduce its manpower in Germany by the thousands while BMW will be engaging in cost-cutting measures that would affect the compensation of its employees. 

In a recent report, German news agency tagesschau.de revealed that Audi will be cutting 9,500 of 61,000 jobs in the country. In place of the employees who would be facing job cuts, Audi is planning on hiring 2,000 electric mobility specialists instead. The job cuts, as well as the hiring of the 2,000 e-mobility specialists, are expected to be completed by 2025.

Part of the reason behind these drastic cuts is the sheer under-utilization of Audi’s facilities. According to the German news agency, the 61,000 employees at the two German plants in Ingolstadt and Neckarsulm are largely under-utilized. The Neckarsulm facility, for example, has a capacity of 300,000 cars annually, but its current output is far less, partly due to the region’s shift away from the internal combustion engine.

Outgoing CEO Bram Schot explained the job cuts in a statement to the German publication. “In times of upheaval, we are making Audi more agile and efficient, increasing productivity and strengthening the competitiveness of our German operations in the long term,” he said. 

In a way, a notable part of Audi’s struggles lies in the auto industry’s shift towards electric mobility. This is something that is also being felt by fellow German automaker BMW, which recently announced that it will be adopting some painful cost-cutting measures as well. 

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According to a Bloomberg report, BMW will be reducing bonus payments for employees in Germany. The veteran carmaker noted that this was done to avoid drastic measures such as those being adopted by Audi. This was explained at a staff meeting in Munich on Wednesday by new BMW CEO Oliver Zipse. “Together with the works council, we have reached a common solution. This allows us to avoid drastic measures that others are taking to reduce their costs,” he said. 

It should be noted that BMW’s cuts to its German employees are only part of the veteran automaker’s plan to save over 12 billion euros ($13 billion). These savings will then be used as additional funds to developing new vehicle technologies, one of which is the rollout of the company’s all-electric vehicles. BMW has some catching up to do on this front, as the company’s battery-electric cars are still headlined by a vehicle that is long in the tooth: the BMW i3, which was released back in 2013.

Between the two companies, Audi is ahead considering that it has already released the e-tron, a fully-electric SUV, to the market. That being said the e-tron suffers from poor range and efficiency, with the vehicle only receiving a 204-mile EPA rating despite its 95 kWh battery. BMW, on the other hand, has vehicles like the i4 and the iX3 on the way, though the vehicles are not yet in production.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Rivian is suing Ohio for a direct sales ban, and it lists Tesla as getting favoritism

“…the Legislature enacted a special provision for Tesla that not only permitted Tesla to continue selling vehicles from two dealerships it already had in the state, but also to sell vehicles from an additional dealership. This special provision does not apply to Rivian.”

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Credit: Teslarati

Rivian is suing the State of Ohio’s Bureau of Motor Vehicles because it will not allow the automaker to sell vehicles directly to customers.

Direct sales are enabled for Tesla in the state, however, and Rivian, a rival of the Musk-headed company, says the EV leader is getting favoritism because it is allowed to use direct sales.

Calling the direct sales ban “irrational in the extreme,” according to the Verge, which first reported on the lawsuit, Rivian claims Ohio is putting money ahead of what is best for car buyers:

“Ohio’s prohibition is pure economic protectionism for the benefit of Ohio’s existing auto dealers, putting their profits ahead of consumers.”

Direct sales are used to sell vehicles at a fixed price to consumers without using the traditional dealership model. Tesla does not allow dealerships to be bought like franchises.

The company owns all of its showrooms, and it has set prices on its cars. Consumers traditionally cite car negotiations as one of the most stressful activities; Tesla has always avoided it.

In Ohio, it is allowed to sell directly to customers who want to buy its products, but Rivian is not allowed as of now. This suit aims to change that.

It said:

“In 2014, the Ohio Legislature enacted a bill providing that the Ohio Registrar of Motor Vehicles shall deny a motor vehicle dealers’ license—which is required to sell vehicles in Ohio—to anyone who is “a manufacturer, or a parent company, subsidiary, or affiliated entity of a manufacturer, applying for a license to sell or lease new or used motor vehicles at retail.” R.C. 4517.12(A)(11). At the same time, the Legislature enacted a special provision for Tesla that not only permitted Tesla to continue selling vehicles from two dealerships it already had in the state, but also to sell vehicles from an additional dealership. This special provision does not apply to Rivian. As a result, Ohioans seeking to purchase Rivian vehicles must do so through Rivian’s dealer-licensed locations in other states.”

Rivian said in the complaint that it does not claim that Ohio’s provision for Tesla is unconstitutional. However, it does argue that the prohibition of direct sales is unconstitutional as applied to Rivian.

Therefore, it believes it should be able to sell directly to consumers in Ohio as Tesla can.

The case is Case No. 2:25-cv-858, Rivian, LLC, vs. Charles L Norman, Registrar of Motor Vehicles of the Ohio Bureau of Motor Vehicles.

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Tesla engineer explains why Elon Musk deserves new pay package

“When Elon is motivated, it also motivates us, especially in this fork of humanity. I would not be staying in Tesla this long unless he is still leading.”

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Elon Musk giving YouTube tech reviewer Marques Brownlee a tour of the Fremont factory. (Credit: MKBHD/YouTube)

A Tesla engineer took to X to explain why he believes Elon Musk deserved the new 96 million share, $29 billion pay package that the company awarded to him yesterday.

Yun-Ta Tsai, a Senior Staff Engineer in the Autopilot program at Tesla, has worked at the company for five years. He has been in his current position for two years and three months.

Tesla rewards CEO Elon Musk with massive, restricted stock package

Tsai posted a lengthy statement in response to Tesla announcing its new pay package for Musk, which the company’s Board of Directors announced yesterday. He was fully in support of his boss getting paid, especially considering Musk “came to work every day” without being paid for eight years.

Tsai said:

“8 years without pay, but Elon still came to work everyday despite hitting all the milestones.

Most founders, even being paid much better, would simply abandon ships or being “zucked”.

I often joked my annual comp was higher than Elon but it was true.

When Elon is motivated, it also motivates us, especially in this fork of humanity. I would not be staying in Tesla this long unless he is still leading.

Hopefully Elon gets his first paycheck soon after 8 years of grinding in hell. It is time.”
It’s no secret that Musk has the reputation of someone who is incredibly driven, motivated, and determined to come through on his personal and professional goals. In times of need at the company, Musk sleeps at the office and works seven days a week.

Recently, it came to the surface that he nearly missed his brother’s wedding years ago because of work.

Musk’s attitude toward work is what has made Tesla, SpaceX, Neuralink, and other entities so successful.

Musk’s new pay package

Tesla announced the new pay package for Musk yesterday, under the following terms:

  • 96 million restricted shares of stock, subject to Elon paying a purchase price upon meeting a two-year vesting term, to be delivered after receipt of antitrust regulatory approval
  • The purchase price will be equal to the split-adjusted exercise price of the stock options awarded to Elon under the 2018 CEO Performance Award ($23.34 per share)
  • A requirement that Elon serve continuously in a senior leadership role at Tesla during the two-year vesting term
  • A pledging allowance to cover tax payments or the purchase price
  • A mandatory holding period of five years from the grant date, except to cover tax payments or the purchase price (with any sales for such purposes to be conducted through an orderly disposition in coordination with Tesla); and
  • If the Delaware courts fully reinstate the 2018 CEO Performance Award, this interim award will be forfeited or returned or a portion of the 2018 CEO Performance Award will be forfeited. To put it simply, there cannot be any “double dip.” Elon will not be able to keep this new award in addition to the options he will be awarded under the 2018 CEO Performance Award, should the courts rule in our favor

The board added a statement that said it believed now would be an ideal time “to take decisive action to recognize the extraordinary value that Elon created for Tesla shareholders.”

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Tesla Cybertruck leftovers are the main course at the Supercharger Diner

Tesla is using recycled steel from Cybertruck manufacturing for the Supercharger Diner in Los Angeles.

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Credit: Tesla

Tesla Cybertruck panels that are leftover from manufacturing became the main course at the Supercharger Diner, contributing to the futuristic restaurant’s unique exterior design.

The Supercharger Diner was an idea of Tesla CEO Elon Musk’s in 2018, and in July 2025, it officially opened for business, serving a variety of interesting dishes in a futuristic setting that pays homage to the 1950s restaurant experience.

The design of the Diner is what truly sets it apart: it is reminiscent of the stainless exterior that Tesla used for the Cybertruck. It turns out that’s exactly what it is.

tesla diner supercharger in los angeles california at night

Credit: Tesla

Tesla Chief Designer Franz von Holzhausen revealed in an interview with Tesla Owners Club Austria that the company used recycled panels from Cybertruck manufacturing as siding on the epic diner.

Here’s what he said:

Tesla sourced its stainless steel for the exoskeleton of the Cybertruck from Steel Dynamics Inc. and its plant in Sinton, Texas. The company confirmed this through various outlets, including exhibit descriptions at the Petersen Automotive Museum. The steel is refined through a third party before it is used.

Credit: Cybertruck Owners Club

It also uses the same steel for SpaceX Starship.

It’s pretty interesting that Tesla chose to use the stainless steel for the exterior of the diner in Los Angeles, but it also makes sense considering how durable it has proven to be.

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