We would like to welcome Linda Johnson Rice, Chairman and Chief Executive Officer of Johnson Publishing Company (JPC), and James Murdoch, Chief Executive Officer of 21st Century Fox (21CF), to Tesla’s board of directors.
In addition to her role as Chairman and CEO of JPC and Fashion Fair Cosmetics, Linda is CEO of Ebony Media Operations and Chairman Emeritus of EBONY Media Holdings, the parent company for the EBONY and Jet brands. Linda has extensive corporate board experience, having previously served on the boards of a number of companies across a variety of industries, including:
Bausch & Lomb,
MoneyGram and Kimberly-Clark Corporation, and currently serving on the boards of Omnicom Group and Grubhub.
Linda is a Trustee at the Art Institute of Chicago, President of the Chicago Public Library Board of Directors, Council Member of The Smithsonian’s National Museum of African American History and Culture, and board member of After School Matters and Northwestern Memorial Corporation.
Before becoming CEO of 21CF in 2015, James (Murdoch), held a number of leadership roles at the company over a two-decade career.
He previously served as its
Co-Chief Operating Officer,
Chairman and CEO for Europe and Asia, as well as
Chairman of BSkyB, Sky Deutschland, and Sky Italia, the businesses that now comprise Sky plc.
He also served as CEO of BSkyB and STAR, India’s entertainment leader.
In addition to being a key driver of 21CF’s domestic and international expansion, James has been instrumental in the company’s robust social impact initiatives, including its decade-long leadership on environmental sustainability.
James and his wife, Kathryn Murdoch, are founders of a family foundation, Quadrivium, which supports initiatives involving natural resources, science, civic life, childhood health, and equal opportunity.
We are excited to welcome Linda and James to the Tesla board
Even though Tesla technically began delivery of its Model 3 vehicles last year, the first few months of deliveries took place in California where there was no notable cold weather. It took some time for the Model 3 to make its way east and to colder climates, but it finally has, spurring a litany of complaints.
The recent cold front coming through Quebec, where temperatures went slightly below freezing for the first time this year, resulted in a number of reports from local Model 3 owners facing issues with things like door handles, windows and charge ports, reports Zero Hedge.
But don’t take it from these reports, take it from the editor of the pro-Tesla blog electrek himself, Frederick Lambert. He decided to do some testing of his own after reading this report and, on a whim, arrived at the exact same problems. He documented his problems on a YouTube video.
As you can see by viewing the video, he struggles for about a minute, with his bare hands in the freezing cold, just to get the door handle to pop out so he can open his driver side door. Welcome to the future of automobiles.
He claims that preheating was on for about 10 minutes before he even walked up to his car. Prior to turning on preheating, the temperature outside the vehicle was -7C (19F) and the temperature inside the vehicle was about 1C (34F). The preset temperature for his car was 22C (about 71F). Those temperatures shouldn't be too troublesome, he alludes, because they weren't even cold enough to activate the battery pre-heating feature in the car.
Lambert says he has gotten "a dozen" reports of Model 3 owners having the same types of issues. Some have also complained about the charge port door not opening and closing as it should, despite Lambert being able to do so in his video.
What's his advice to other Tesla owners?
"In the meantime, the best solution is likely to overheat the cabin for a longer period of time before trying to unlock the Model 3. Of course, it’s not really convenient or efficient, but it’s the best I can think of for now.
(Reuters) - Tesla Inc s
How did the wicked witch of the North say:aid on Friday it would cut thousands of jobs to rein in costs as it plans to increase production of lower priced versions of its crucial Model 3 sedan, sending its shares down 7 percent.
The company, which has struggled to achieve long-term profitability and keep a tight lid on expenses, also said it expects fourth-quarter profit to be lower than the previous quarter.
Chief Executive Officer Elon Musk said the company would need to deliver at least the mid-range Model 3 version in all markets starting around May, as it needs to reach more customers who can afford the vehicles.
In addition, Tesla said it needs to continue making progress toward a lower-priced Model 3.
Musk has been under intense pressure to stabilize production of the Model 3, a car that was unveiled in early 2016 to great fanfare and seen critical to the company’s long-term viability.
But Tesla has scrambled to get the Model 3 into the hands of customers, many of whom have been waiting since early 2016, and Musk said last year that Tesla had moved from “production hell to delivery logistics hell.”
This is Tesla’s second job cut in seven months and comes just days after it cut U.S. prices for all vehicles and fell short on quarterly deliveries of its mass-market Model 3 sedan.
In a memo to employees on Friday, Musk said 2018 was the “most challenging in Tesla’s history,” adding the company hired 30 percent employees last year which was more than it could support.
“I want to make sure that you know all the facts and figures and understand that the road ahead is very difficult,” Musk said.
“There isn’t any other way,” he added.
Musk said the need for lower priced versions of Model 3 becomes even greater on July 1, when the U.S. tax credit again drops in half, making the car $1,875 more expensive, and again at the end of the year when it goes away entirely.
“Headcount reduction is part of the process of reducing Model 3 price point with the lower range battery and offsetting the reduction in U.S. federal tax credits,” Jefferies analyst Philippe Houchois said .
Tesla sales benefited from a $7,500 federal tax credit on electric vehicles throughout 2018, but that full credit expired at the end of 2018, and new buyers will now receive only half that amount.
“This quarter, as with Q3, shipment of higher priced Model 3 variants (this time to Europe and Asia) will hopefully allow us, with great difficulty, effort and some luck, to target a tiny profit,” Musk said.
Tesla reported a profit of $311.5 million, or $1.75 per share, for the third quarter ended Sept. 30.
Musk, who has often set goals and deadlines that Tesla has failed to meet, surprised investors by delivering on his pledge to make the company profitable in the third quarter, for only the third time in its 15-year existence.
Tesla said on Friday it would reduce full-time employee headcount by about 7 percent and retain only the most critical temps and contractors.
In June, the company said it was cutting 9 percent of its workforce. Musk had tweeted in October that the company's team had 45,000 people. (bit.ly/2HgyuNH)
Tesla owners may be happy in 2019, even if their investors are skittish.
Tesla Chief Executive Elon Musk said Tesla TSLA, -8.95% faces a tough challenge of “making our cars, batteries and solar products cost-competitive with fossil fuels,” and that the company’s products are “still too expensive for most people,” according to the update on the company’s blog that was emailed to all employees.
There’s some good news for owners, if not investors. Even after all the recent tax law changes, the federal income tax credit for qualifying new plug-in electric vehicles is still on the books. It can be worth up to $7,500. Some states offer additional incentives.
Here’s what you need to know to cash in along with some news.
News of layoffs and a likely smaller fourth-quarter profit stoked investor fears about growth and demand at Tesla Inc., bringing the company’s shares down 13% on Friday.
Tesla TSLA, -12.97% shares ended at $302.26 and traded as low as $299.73, the worst performer on the Nasdaq 100 NDX, +0.98% 12% in the past 12 months, compared with losses of around 4.5% for the S&P 500 index. SPX, +1.32%
“We think Tesla probably increased its employee base by more than it needed to last year, and is laying off some of those workers to bring down costs," said Garrett Nelson, automotive analyst at CFRA Research.
“For most auto manufacturers, the cost-cutting would be received positively, but in Tesla’s case, investors start to second guess whether demand is the real issue,” Nelson said.
In a memo to employees reviewed by The Wall Street Journal and later posted on the company's website, Chief Executive Elon Musk said Tesla would post GAAP profits when it reports its fourth-quarter results, “but less than Q3.” Tesla has not yet set up a date for its quarterly earnings.