Tesla’s recently announced job cuts are to fall squarely on the solar electricity business it bought two years ago in a deal that was criticised by investors. The $57 billion electric car and battery maker will close 12 solar installation facilities in the United States and will end a lucrative partnership with Home Depot that generated about half of the sales of the solar business, leaked internal documents obtained by Reuters showed. Tesla bought Solar City, a solar panel manufacturer and installer, for $2.6 billion. Investors had expressed concern about apparent conflicts of interest, given that Elon Musk, chief executive of Tesla, was the majority shareholder in both companies and that his cousin, Lyndon Rive, ran Solar City. Analysts suggested that Mr Musk was attempting a backdoor bailout of Solar City. Mr Musk sa id this month that Tesla would cut 9 per cent of its workforce, or 3,800 jobs, as it sought to reduce costs and turn its first annual profit after 15 years in business. Tesla is struggling to hit production targets for the Model 3, its first mass-market vehicle.
Times 23rd June 2018 read more »
Guardian 22nd June 2018 read more »
