OPINION: Tesla layoffs bring the entire electric-vehicle industry into question – by Gus Carlson (Globe and Mail – April 20, 2024)


Talk about an inconvenient truth. After months of trying to explain away the gathering clouds over the electric-vehicle sector as the usual growing pains of an emerging market, the EV faithful swallowed a bitter pill this week when Tesla finally blinked.

The market and spiritual leader of EVs said it will lay off more than 10 per cent of its work force, more than 14,000 people, because of slowing global demand. The company’s deliveries have dropped for the first time in four years, and unsold inventory has swelled to almost 50,000 vehicles.

Tesla’s stock tumbled on the news, and rumours circulated that the summer launch of its highly anticipated US$25,000 car, meant to compete with low-priced Chinese EVs, would be delayed – rumours Tesla CEO Elon Musk denied.

The glimpse into Tesla’s mortality was a blow to even the most devout EVangelists, many of whom have dismissed anyone who has dared to tell the truth about the ominous signs of trouble on the road to EV nirvana as Luddites with a Chicken Little complex.

For the rest of this article: https://www.theglobeandmail.com/business/commentary/article-tesla-layoffs-bring-the-entire-electric-vehicle-industry-into-question/