Tesla trails Ford and GM in revenue generated per worker
Tesla, led by Elon Musk, who is considering staff reductions, falls behind Ford and General Motors (GM) in the revenue generated per employee, according to the latest financial figures from US car manufacturers.
While Tesla earned nearly $97 billion last year, amounting to about $690,000 per employee for its workforce of over 140,000, GM surpassed this with $1 million per its 163,000 employees, and Ford followed closely with $937,000 per its 173,000 staff.
Amid concerns over slowing EV demand and heightened competition, Tesla has seen its growth projections decline for the year. To address costs, Tesla is scrutinizing the necessity of each job role, inciting worries about potential layoffs.
Despite these challenges, Tesla's shares saw a slight rise of more than 1% on Thursday, though its market value has dropped by over $180 billion in 2024, putting its current worth at $603 billion, slightly more than semiconductor giant Broadcom.
Tesla's profit margins, previously a strong suit, hit a low in the December quarter not seen since 2019, even as its quarter revenue increased by 3% to $25.17 billion, the least growth in over three years.
However, Tesla has improved revenue per employee from $637,000 in 2022 and expanded its workforce by 10% in 2023.
Tech giants on Wall Street have been shedding jobs acquired during the pandemic, releasing hundreds of thousands of workers in the past two years but still managing to boost sales.
Meta Platforms exemplified this trend by increasing quarterly revenue by 25% while cutting costs by 8%, after laying off more than 21,000 staff since late 2022.