Tesla: Heads have started rolling and Musk postpones compact model development

The US portal Electrek says it “can confirm” that Tesla is putting its compact model on the back burner. Reports had recently surfaced, saying that the carmaker halted development of its planned compact model for around 25,000 US dollars – reports that CEO Elon Musk had denied.

However, Electrek has learned that the carmaker is, in fact, postponing the project internally called ‘NV9.’ Though “postponing” does not equal “cancelled,” the US carmaker is concentrating its resources on its self-driving model, specifically a data centre that will be built in an ongoing expansion of the Giga Texas. The centre is supposed to go online on 20 August, but is apparently behind schedule.

That has consequences. As reported yesterday, Tesla wants to reduce its global workforce by about 10 per cent. Among those let go are apparently “many people in [the project],” Electrek writes.That includes Amir Mirshahi, director of infrastructure at Tesla Gigafactory Texas.

Trouble in paradise?

Other projects also lost their head. As suspected, Tesla’s SVP of Powertrain and Energy Engineering, Drew Baglino, was among those let go. He was in charge of several engineering projects, including the 4680 battery cell production and the cathode factory at Gigafactory Texas. However, there have been severe delays for both projects. A person familiar with the matter described the latter to Electrek as “a financial black hole.” Anthony Thurston, Senior Manager of Cathode Materials & Manufacturing at Tesla, who was reporting to Baglino regarding the cathode factory project, was allegedly also let go. Moreover, Policy Chair Rohan Patel confirmed his leaving the company on X, formerly known as Twitter.

Tesla – and Elon Musk himself – argue that it is cutting jobs to counter the workforce’s “rapid growth” in the past, which has led to “duplication of roles and job functions in certain areas.” On Twitter, Musk stated that “about every five years, we need to reorganize and streamline the company for the next phase of growth.” However, it also comes as Tesla presented declining production and delivery figures at the beginning of April. What that means in terms of financial resources remains to be seen. The carmaker will present its financial figures next week.  At the end of March, Tesla announced that it would scale back production at its plant in China. Bloomberg reported, citing insiders, that Tesla had manufactured its Model 3 and Model Y at the Shanghai plant on five days a week since the beginning of March – instead of the previous 6.5 days.

As mentioned above, another model is causing the carmaker trouble: the Cybertruck. Apparently, Tesla has delayed some Cybertruck deliveries, and it was reported yesterday that it would scale down the production of its electric pickup at the Giga Texas.

But there is more: A user claimed on social media that his acceleration pedal got stuck. Since then, other customers reportedly got messages from dealers and the carmaker confirming issues with the accelerator pedal. The National Highway Traffic Safety Administration (NHTSA) says it is aware of the problem and is looking into it.

electrek.co (layoffs), electrek.co (compact model), techtimes.com, theverge.com (both Cybertruck)