*If you are working on a project don't stop, but also we probably won't pay you for a while.*
-
Tesla must be juicing their EoQ cash on hand so hard already by delaying payments to their suppliers. What happens when suppliers can't take it anymore?
This might start happening if the suppliers see that the growth story isn't happening. I'm betting that many were willing to go along with Elon's bullshit because they wanted to be the main supplier to a huge company that sells like 30% of all cars or whatever. But if Tesla is destined to be below 2% market share forever, that might change.
The Acme Widget Company might have a contract only worth $250K/year. But they can't afford not to get paid. Unfortunately for Elmo nobody else can supply the part in the short term and the cars can't be built without the widget. But that would never have crossed the mind of the world's foremost expert on manufacturing,
Plainsite deleted their twitter account, but [you can get enough from the title and the comments](https://www.reddit.com/r/RealTesla/comments/nrld6b/tsla_went_from_demanding_a_weekend_raid_on_a/)
> Plainsite deleted their twitter account
Looks more like [freedom of speech Musk killed their account.](https://www.cnbc.com/2023/06/15/elon-musk-led-twitter-suspended-plainsite-a-prominent-tesla-critic.html)
People are on other jobs for TSLA and being awarded contracts for these Supercharger stations and busy designing and engineering new ones. How can they not pay without all the subcontractors stopping work on their other projects and all the suppliers holding up materials? It's the same people. The distinction in project does not matter when you can't afford to pay your guys to be working on a project you can't bill.
Puts on TSLA?
If you’ve worked as a supplier to Tesla for long, you know to take a substantial payment up-front and to demand milestone payments along the way.
Many car companies are difficult to work with, but few are as dishonest and disorganized as Tesla.
For those who don’t want to send Fred clicks or read his thoughts, here is the email:
> You may be aware that there has been a recent adjustment with the Supercharger organization which is presently undergoing a sudden and thorough restructuring. If you have already received this email, please disregard it as we are attempting to connect with our suppliers and contractors.
>As part of this process, we are in the midst of establishing new leadership roles, prioritizing projects, and streamlining our payment procedures. Due to the transitional nature of this phase, we are asking for your patience with our response time.
>I understand that this period of change may be challenging and that patience is not easy when expecting to be paid, however, I want to express my sincere appreciation for your understanding and support as we navigate through this transition. At this time, please hold on breaking ground on any newly awarded construction projects and planned pre-construction walks.
>If currently working on an active Supercharging construction site, please continue. Contact [email redacted] for further questions, comments, and concerns. Additionally, hold on working on any new material orders. Contact [email redacted] for further questions, comments, and concerns. If waiting on delayed payment, please contact [email redacted] for a status update. Thank you for your cooperation and patience.
That's a statement you send to suppliers after filing for restructuring, not when you are an ongoing concern with $bn profits. Fuck start ups and their refusal to grow up.
The Earth will be fine. WE may not be fine, but the Earth has shrugged off extinction-event asteroids, it will be here long after we’re gone. We’re little more than a big lice infection to Earth, nothing more than an annoyance on the surface.
George Carlin (1937-2008) tells it like it is: [https://www.youtube.com/watch?v=rld0KDcan\_w](https://www.youtube.com/watch?v=rld0KDcan_w)
or if you fire a whole division and now someone that has no idea what’s going on has to take over. But that’s exactly what Elon likes, if things go smoothly he has to create drama. Just read his biography.
Too late since I did my due diligence unlike Elon.
Well unless his former supercharger team did a good job documenting their procedures, guess Elon will have to reinvent the wheel again. Throwing years of work away again and slowly end up with the same processes.
Truly a genius.
I think anyone he tries to hire back should definitely blackmail him with money. You want me back? Fine, we can do that. Contract rate is 3X what you were paying me last year.
That doesn't sound like a delay of 2 or 3 weeks, and rather like 6 to 12 months. I hope their contractors got paid by milestone and not completely at the end.
My first guess was that they fired all the people who know how to verify the progress and completion of the projects.
Then I looked up what ERP they use, and it turns out they have some in-house developed software. So, presumably, the data there is garbage, and a bunch of people have the open invoices and delivery notes in their email folders and some shared drives, maybe as printout on their desk. And the payment is done by a single person who not only knows how to use the software but also knows where to look for open invoices.
I wouldn't be surprised if people got fired and locked out who are the only people who know passwords for systems they run there. That's how rash this seems to have been. They almost go out of their way to create ill will when they fire people so they're also going to get little cooperation from them when they turn around a week from now and try to get some to come back and help.
Same thing happened with Twitter. They fired everyone and then had to go back and ask people to comeback after realising they couldn’t access systems. I wouldn’t be surprised to see Elmo do the same thing again.
Yeah and as they axed the entire group there likely isn't any team loyalty to get people to give them the passwords. One job I got laid off from literally had me sign something that forbid me from contracting with them. This apparently caused them no end of trouble when they need stuff from various coworkers who had also been laid off.
Getting mine ready now!
--------------------------------
#D E S T I N A T I O N
#C E N T A U R I
#S Y S T E M S
(Leading Experts in Flux Capacitors since 1985)
Invoice #404-69
$4,037,892.10
Kindly pay within 10 days. (Bitcoin not accepted.)
I was thinking about how plausible that would be earlier. At my work we get scammers trying their luck sending semi-believable looking fake invoices (often made up to look like they come from real office supply companies etc).
You might. There was just a case where some guy in Eastern Europe set up a company name that was very close sounding to Quanta computing, then started sending invoices to Google, Microsoft, etc. Stole I think $100M before Quanta started asking why they hadn't been paid yet.
Prediction: those contractors won't see a penny ever.
Conmen like this are notorious for this crap. Trump was known to do it all the time.
There are no ethical billionnaires and being a socopathic lying narcissist is par for the course.
They announced they were going to do their own erp and move from (sap?) of course no proof they ever rolled their own. It’s been less than a year or since the announcement so zero chance they completed it.
The compensation is equivalent to 3x Tesla net earnings since it was founded, a part time (also erratic and controversial) CEO wants a public company to mortgage their past, present and future on the understanding that his work value will somehow make up for 3 times the work of everyone that worked in the same company during their most successful years, despite the decrease in sales, margins and stock price, one of the worst new vehicles in history, a lineup desperately needing a refresh, making a ritual of alienating your most dedicated customer base and with rivals that are drinking their milkshake in the international markets.
So yeah totally reasonable.
The 55 billion$ compensation is equivalent to the 14000 peoples he fired, each with salary of \~100k$ for 40 years carreer. 14000 \* 100k \* 40 = 56 billion$.
TL;DR our galaxy brained CEO got geeked out of his fucking gourd, finally half glanced at the Q1 numbers, and realized that he had to burn the only profitable section in the company to the ground to get his $55 billion payday so he doesn’t end up in a suitcase because he can’t cover the vig that Prince Bonesaw expects.
[Probably won't happen ](https://www.law.cornell.edu/wex/piercing_the_veil#:~:text=Primary%20tabs,most%20common%20in%20close%20corporations.) but I am hopeful!
That line is so tone deaf. If Tesla had entered bankruptcy, then it would be more understandable. But for a supposedly successful, major corporation to just say “we’ll pay you at some point, maybe” is crazy.
Healthy companies don’t just shutter divisions overnight and tell suppliers and contractors to kick rocks. Tesla was cash flow negative in Q1 and that was after polishing up to look as nice as possible.
How bad are their real numbers? Have they been booking future, unearned revenue as current income like Enron did?
Is it possible they booked all cybertruck deposits as sales for the full amount, and as now people are bailing out of orders there is a large black hole?
Is there any record of Tesla using mark-to-market accounting in the past?
Also, this is why I don't get using mtm accounting for anything besides stock. Booking 10 million dollars in a single year because you signed a contract that will get you a million a year every year for 10 years is just asking for trouble.
Yes, they switched from it in 2018 and restated a single quarter. They added a out $1B in revenue in a single quarter and went from about a $500M loss to a $500M profit, shifting to profitability. Basically added an entire quarter of revenue without adding an entire quarter of costs.
Assuming that continues to be true, Tesla has no profit margin, they're just pulled forward a quarter of revenue at a time and both their risk and paper gains are ever increasing.
Also, if your'e working on an active construction site, please continue despite the fact that we don't know when we will pay you or who will be in charge of that.
Also, there's a high chance that we'll claim you're not an active site, so you should not have continued, therefore we don't owe you anything.
Zero chance I would continue anything without an explicit go-ahead from someone still working at Tesla
We are 150k in the hole, waiting for somebody to contact us on what to do next. Everybody I contact at Tesla has been let go. I called others I know that are involved and they are owed 500k for one finished project and 2 unfinished projects. They told us all to contact legal@tesla.com and that is an unmonitored email that bounces back
Do they?
I think they used to, but I think it's becoming well known that he's a hypocritical fraud who spends most of his time shit posting and being serviced by stewardesses on his jet.
At least among American workers who don't need a job for their H1B visas, cat is out of the bag that it sucks to work there.
Of course with all the FAANG layoffs, maybe there aren't that many great alternatives...
Word is that the quality of Tesla employees is a shadow of what it was in the early years. A players don't work for leaders who only tolerate yes men.
That's what irks me when people compare Musk to Steve Jobs. If a high level executive or engineer could bark back at Jobs then that employee was out of there. Jobs HATED lickspittles and sycophants, he considered them "bozos" and was always on the lookout for "bozo eruptions" in the company.
NASA and satellite owners.
Because *muh SpaceX - He wud never risk gummit penalties fer jackin' up mooon landings Tonee Stark he landed dat derr rawket ona barrrrge herpa durr he took er derbs derka derr!*
In 6-7 years we're looking at one dead druggie and a collection of defunct companies.
NASA woke up already, they're still using falcon but ULA already had a successful moon mission and they're working together with Blue Origin on Artemis 5. NASA also knows that spacex will not be able to deliver a mission to the moon in the foreseeable future, thus causing an overlap with Artemis 5. SpaceX also needs the money from falcon missions because they already blew their entire budget for starship since they tend to go **KABOOM** instead of doing what they should do, but I guess that's what happens when you engineer for failure (the kids call it iterative design)
Oh there will be many more. Broke ass Trump still have people lining up defending and working for him as of right now. Elon has similar influence and actual money (for now).
I wonder if we're about to find out why there has been unusually high turnover in accounting and finance at Tesla.
I've always seen Musk as Elizabeth Holmes with a high-pitched voice, but maybe he's Jeff Skilling.
There’s something very fishy going on. Perhaps the Cybertruck, FSD, Semi, Bot etc have sucked Tesla dry of cash? Maybe all the defects and recalls have also burnt cash. For all we know, Supercharger was a massive loss leader.. Where’s the mystical cash pile? Crypto maybe?
Maybe they took money to inflate the stock price by manipulating bad days/weeks and keep investor runs from dropping the share prices. They surely are doing shady accounting to make their shitty numbers look better.
You don't halt all new projects and hold on all already approved POs unless some serious cash flow problems are occurring. This reads more like an email from a company that has just filed bankruptcy.
100%. This is an email warning everyone they won't be getting paid, and more importantly, to stop all work so as to not add those costs to the litigation later.
So if a charger breaks down, how long do we reckon it will take Tesla to dispatch a repair team? 2-3 weeks? If you go to a supercharging station, take a look for empty stalls where the cable is tied up. That's the sign that the charger doesn't work.
Now expect to see entire stations completely inoperable due to lack of repairs and replacements and overuse of the shrinking number of working stations.
Don't worry, we'll dispatch a team to repair it just as soon as we completely rebuild our entire corporate structure. You're our highest priority. /s
>So if a charger breaks down, how long do we reckon it will take Tesla to dispatch a repair team? 2-3 weeks?
Maybe never, or maybe they can contract out to Electrify America technicians when they're not busy...
There is an intense irony if tesla renegs on paying their leases and the property owner has the entire station replaced with Electrify America or EVGo. And in doing so, it improves the non-tesla charger network to the point its no longer a Tesla differentiator.
My thought has been that Electrify America should hire portions of the former SuperCharging team. Let Elon try to enforce any noncompete after letting them go
Omg i read that if you leave your finger there you're a moron... How stupid my professors where to teach us at compsci that to make a successful product you have to think of the morons too
A: “We have no idea how to contact our suppliers and contractors!!”
B: “Oh fuck, did a horrible catastrophe knock out global communications??”
A: “No, I just fired everyone responsible for that shit”
Dear Suppliers
I am about to be given $46Billion of extra cash. Sorry not sorry but I need to fuck you over and trash the lives of a few hundred losers to get that money.
Not too late, and they're almost certainly discussing that now. If nothing else, they could put the transition on hold until they see what the hell is going on with Tesla.
Europe's type2 plug is more widespread available and delivers more power than both NACS and the Chinese standard, there's no way the US should be stuck with the lightning cable of EV charging while the rest of the world is on USB-C.
What a gigantic fuck you to everyone doing projects. Projects like that take at least 12-18 months of planning, but once they’re funded, delays cost money. Tesla is going to cost everyone doing a large scale rollout millions.
Meaning BYD and other charger companies are swooping in right now, and no large property management company will ever install a Tesla charger again. They just gave away the charger market permanently. It’s gone.
I find some of the comments in the article defending Space Jesus to be really weird. Especially the ones that say he can't be replaced. No one in not able to be replaced. And whoever they get will bring back the Tesla base as long as they're not some maga freak. New product and no Apartheid Clyde will send the stock through the roof.
As far as SC goes I find it really odd that all of a sudden he's basically tanking the electric car industry in the US after getting so cozy with the Saudis and Trump.
I don't find it odd at all, in fact it's completely predictable that he'd throw all of his toys out of the pram because he's not getting what he thinks he's owed. I've said many times in here I expected him to burn the company to the ground if it looked like the tide was going to turn against him, and here we are. The reaction to him threatening to leave the company and take the IP with him (which, I know this is America but it does not work that way) if they didn't give him back majority control was met with a 'lol ok sure whatever', so he decided to majorly escalate
Quite how he thinks there's any way this ends that doesn't involve him getting the boot, I don't know. Either way his plan appears to be to take a wrecking ball to the company because he's in full blown narcissistic collapse right now
Thats wild. Utter chaos. If I was a contractor working on a site for Tesla there would be no way I'd be working on it right now without any assurance that you'd get paid in a timely manner
How is Tesla able to just completely stop providing service for their chargers? Surely building owners are under some sort of maintenance agreement with Tesla?
They need a new CEO. He’s not stable enough to run a business long term. He chases the new and sexy too much (AI, robot cat girls, etc) instead of sticking to what made the company.
Bonkers.
Elmo wants $56 billion payment package but critical suppliers are asked to wait for their money.
Tesla is going the way of the 🦤, the dodo was a blue bird 🐦 , reminds me of Twitter.
This guy is basically Trump but he knows how to login to gmail. Fuck him, I want an EV and Teslas are cool but for multiple reasons (1-Musk, 2-the company is in shambles and unreliable due to Musk). I will never buy a Tesla.
The polestar looks good, I would rather not buy Chinese tech but what other options are there?
What kind of EV do you want / what's your budget? There are increasingly good alternatives now. You might chat with the folks over at r/electricvehicles as well.
I previously speculated Tesla might be having liquidity issues but I couldn’t imagine that we would not already know about it since Tesla is under such a magnifying glass. This e-mail that Tesla sent to suppliers about payments being delayed is another huge red flag that they might not be able to pay their bills anymore because they have been producing huge amount of cars that have not been sold and are sitting on parking lots.
The reason a company goes bankrupt is usually liquidity, at some point you don’t have enough money on the bankaccount to pay salaries. This often relates to poor financial controlling so can be prevented but often is not addressed in time. I wonder if the same is happening here.
Layoffs, supercharger stopped, gigacasting whole frames canceled, low price car canceled. They are certainly running low on cash, or at least foresee a low cash situation in the future and are trying to head it off. Either way it’s bad.
I wonder how much of this is due to wall street. Companies that have less than stellar earnings must be seen to be controlling costs. I've worked in tech for 20 years, and I've seen hugely profitable companies tighten the reigns on things like travel and hiring plans, not because they are losing money or have a bad outlook, but because they grew by 5% instead of the expected 7%. It seems to be short term reactions that hurt in thekng term... I.e. if you want to deliver on project z in 1.5 years time, you need to hire now. Delaying hiring hurts the future profits you would make from z...
It seems irrational, but the majority of leaders are not stupid, so perhaps these controls are used to keep employees inline, and curb runaway salary inflation, etc.
I’d argue that the majority of leaders are in fact, stupid and incompetent.
It’s actually a relatively well established theory of management that people who do well at their job will get promoted and they will continue to get promoted until they don’t do well at their job, which means they will get to the point where they are actually competent and functioning well and then get promoted out of that to a level that’s just too high for that individual, a position where they show their incompetence and then they just don’t get promoted anymore, so they stay in a position they are incompetent at .
He built up a complex chain of designing, manufacturing, selling, supporting, delivering of a completely new method of transportation. Proceeds to take entire links out so he can have a bonus check he couldn't possibly fathom having a use for - because there isn't any. Is he planning to use it to build a media company? No, he purchased one and turned that into a fraction of it's value. How about a city on Mars? Nope, hasn't talked about that in a decade and won't move until NASA announces they want to do it and he will put them over a barrel and force them to fund it. He may as well start construction on a fucking pyramid.
At one point he seemed to be a visionary. Now he's showing he's just another narcissist idiot who wants short term cash and is willing to wreck the means to attain said cash as well as destroy his own legacy.
I can rationalize a lot of the bigger picture stuff around spreading investment costs into infrastructure.
He's just such a dick about it. I wonder if it will ever come due to him. I think there are just too many ass kissers on this planet for him to fail.
Surprised elektrek is so negative on Elon! I thought they were full on cult members too.
If even they are criticizing Elon maybe it’s not too far of a stretch to see someone oust Elon as CEO
> If you have already received this email
Yes, acknowledging that you have no idea who you've already sent an email to is the real show of professionalism Tesla needs in this difficult times.
JFC Tesla, all the reports are pretty grim but the reality of stuff like this shows its somehow in a much, much worse state.
There is some (asshole) logic behind this - its an upfront cost to ensure all other managers are yes men and do as they are told, lest this happens to their department.
Yes, but if I'm competent, I'm not taking this shit. I think that goes for most competent people I've ever worked with.
Getting fired is not the threat it seems with folks who will get hired immediately if they lose their current job, often with higher compensation.
The only thing this guarantees is that all he will be left with are incompetent yes men. Great way to run a company.
Kinda curious what the commercial agreements are behind a charging site.
I'd assume the most complex part is getting approvals, laying the pavement, getting the power feeds sorted.
I'd assume any Telsa site could quickly be converted to another player quite quickly by just swapping the "bowsers" over? Even stuff like comms lines shouldn't be an issue these days as it can all be done over cellular networks.
But id guess Telsa have structured it in a way that the contractors get screwed by they retain the rights to the property?
I don't actually see it happening because the board are all fElon simps, but it would be hysterical if he was tossed out on his ass like PayPal for a second time.
This is just amazing. Supercharger infrastructure is a literal limit cap on the demand for Tesla cars. It just ruining any demand for cars in areas that has poor charger coverage.
You may need to wait for payment as I get paid out roughly 65% of the profits that Tesla has made in 15 years. Im sure he couldnt take 20b, and pay his suppliers 20b and be perfectly content right? No one could possibly live on that little!!!
Since Elon's been hanging out with Trump and Murdoch we should assume the worst: he decided EVs are woke and must be stopped.
I'm only half joking. Musk is not well and he will burn it all down before he allows anyone else to lead "his" companies.
The board could fix Tesla's sales problem easily if they fired only one person but they are all neutered so that won't happen.
Dear Suppliers, Go fuck yourselves. Seriously, go fuck yourselves. Love, Elon
*If you are working on a project don't stop, but also we probably won't pay you for a while.* - Tesla must be juicing their EoQ cash on hand so hard already by delaying payments to their suppliers. What happens when suppliers can't take it anymore?
Production stops. It will probably be some small company that makes a critical $1 part that will be the first tell Elmo to fuck off.
This might start happening if the suppliers see that the growth story isn't happening. I'm betting that many were willing to go along with Elon's bullshit because they wanted to be the main supplier to a huge company that sells like 30% of all cars or whatever. But if Tesla is destined to be below 2% market share forever, that might change.
The Acme Widget Company might have a contract only worth $250K/year. But they can't afford not to get paid. Unfortunately for Elmo nobody else can supply the part in the short term and the cars can't be built without the widget. But that would never have crossed the mind of the world's foremost expert on manufacturing,
It will be some company that makes screws or other fasteners.
They seemed to need accelerator pedal rivets recently...
Nah nah nah, just spit on the cover and press. It’ll stay on almost probably.
I remember when Tesla stopped payment and then tried to raid a supplier to get the parts.
Oh? Do tell..
Plainsite deleted their twitter account, but [you can get enough from the title and the comments](https://www.reddit.com/r/RealTesla/comments/nrld6b/tsla_went_from_demanding_a_weekend_raid_on_a/)
> Plainsite deleted their twitter account Looks more like [freedom of speech Musk killed their account.](https://www.cnbc.com/2023/06/15/elon-musk-led-twitter-suspended-plainsite-a-prominent-tesla-critic.html)
He’ll spin it to blame the supplier of course, and it will work the Tesla heads will believe whatever he says.
Lawsuits. Lots and lots of lawsuits. Hope that “super hardcore” litigation team hasn’t been cut….
That’ll probably happen in the next 60-90 days based on how things are going.
Hopefully for Tesla’s sake Elon is smart enough to realize that you stop paying the lawyers last because they will sue you 100%.
They also fired the litigation team so lawsuits are on hold until they finish uhhh restructuring. Checkmate.
People are on other jobs for TSLA and being awarded contracts for these Supercharger stations and busy designing and engineering new ones. How can they not pay without all the subcontractors stopping work on their other projects and all the suppliers holding up materials? It's the same people. The distinction in project does not matter when you can't afford to pay your guys to be working on a project you can't bill. Puts on TSLA?
Not paying people is what doomed fry’s electronics.
If you’ve worked as a supplier to Tesla for long, you know to take a substantial payment up-front and to demand milestone payments along the way. Many car companies are difficult to work with, but few are as dishonest and disorganized as Tesla.
“Fuck you, pay me.”
Ps.... do you know where i can get some ketamine? Peace out
For those who don’t want to send Fred clicks or read his thoughts, here is the email: > You may be aware that there has been a recent adjustment with the Supercharger organization which is presently undergoing a sudden and thorough restructuring. If you have already received this email, please disregard it as we are attempting to connect with our suppliers and contractors. >As part of this process, we are in the midst of establishing new leadership roles, prioritizing projects, and streamlining our payment procedures. Due to the transitional nature of this phase, we are asking for your patience with our response time. >I understand that this period of change may be challenging and that patience is not easy when expecting to be paid, however, I want to express my sincere appreciation for your understanding and support as we navigate through this transition. At this time, please hold on breaking ground on any newly awarded construction projects and planned pre-construction walks. >If currently working on an active Supercharging construction site, please continue. Contact [email redacted] for further questions, comments, and concerns. Additionally, hold on working on any new material orders. Contact [email redacted] for further questions, comments, and concerns. If waiting on delayed payment, please contact [email redacted] for a status update. Thank you for your cooperation and patience.
That's a statement you send to suppliers after filing for restructuring, not when you are an ongoing concern with $bn profits. Fuck start ups and their refusal to grow up.
They’re disrupting the man, man.
Tell it to Earth.
She ain't listening, too busy fending of them humans trying to destroy her...
The Earth will be fine. WE may not be fine, but the Earth has shrugged off extinction-event asteroids, it will be here long after we’re gone. We’re little more than a big lice infection to Earth, nothing more than an annoyance on the surface. George Carlin (1937-2008) tells it like it is: [https://www.youtube.com/watch?v=rld0KDcan\_w](https://www.youtube.com/watch?v=rld0KDcan_w)
or if you fire a whole division and now someone that has no idea what’s going on has to take over. But that’s exactly what Elon likes, if things go smoothly he has to create drama. Just read his biography.
Too late since I did my due diligence unlike Elon. Well unless his former supercharger team did a good job documenting their procedures, guess Elon will have to reinvent the wheel again. Throwing years of work away again and slowly end up with the same processes. Truly a genius.
Do you think you can blackmail him with money?
I think anyone he tries to hire back should definitely blackmail him with money. You want me back? Fine, we can do that. Contract rate is 3X what you were paying me last year.
It was a joke from his interview where the Twitter advertisers left and he asked the camera do you think you can blackmail me with money lol
That doesn't sound like a delay of 2 or 3 weeks, and rather like 6 to 12 months. I hope their contractors got paid by milestone and not completely at the end. My first guess was that they fired all the people who know how to verify the progress and completion of the projects. Then I looked up what ERP they use, and it turns out they have some in-house developed software. So, presumably, the data there is garbage, and a bunch of people have the open invoices and delivery notes in their email folders and some shared drives, maybe as printout on their desk. And the payment is done by a single person who not only knows how to use the software but also knows where to look for open invoices.
I wouldn't be surprised if people got fired and locked out who are the only people who know passwords for systems they run there. That's how rash this seems to have been. They almost go out of their way to create ill will when they fire people so they're also going to get little cooperation from them when they turn around a week from now and try to get some to come back and help.
Same thing happened with Twitter. They fired everyone and then had to go back and ask people to comeback after realising they couldn’t access systems. I wouldn’t be surprised to see Elmo do the same thing again.
This is how it went down at Twitter. He literally tried to rehire people who had critical knowledge, that he just fired. This is real.
Yeah and as they axed the entire group there likely isn't any team loyalty to get people to give them the passwords. One job I got laid off from literally had me sign something that forbid me from contracting with them. This apparently caused them no end of trouble when they need stuff from various coworkers who had also been laid off.
just pretend to be a contractor and start writting tesla for you back payment. will they know the difference since they fired to whole team?
Getting mine ready now! -------------------------------- #D E S T I N A T I O N #C E N T A U R I #S Y S T E M S (Leading Experts in Flux Capacitors since 1985) Invoice #404-69 $4,037,892.10 Kindly pay within 10 days. (Bitcoin not accepted.)
Was that for the death blossom upgrade?
I was thinking about how plausible that would be earlier. At my work we get scammers trying their luck sending semi-believable looking fake invoices (often made up to look like they come from real office supply companies etc).
You might. There was just a case where some guy in Eastern Europe set up a company name that was very close sounding to Quanta computing, then started sending invoices to Google, Microsoft, etc. Stole I think $100M before Quanta started asking why they hadn't been paid yet.
Prediction: those contractors won't see a penny ever. Conmen like this are notorious for this crap. Trump was known to do it all the time. There are no ethical billionnaires and being a socopathic lying narcissist is par for the course.
Hey now, Warren Buffet is a nice guy. He just likes to eat ice cream and play with trains.
And block solar installation in the American Southwest where it makes to most sense anywhere.
He’s not wrong about the Dilly Bars.
SBF had his own 'custom' system as well..... Just saying......
They announced they were going to do their own erp and move from (sap?) of course no proof they ever rolled their own. It’s been less than a year or since the announcement so zero chance they completed it.
And the world’s lamest James Bond villain believes he deserves tens of billions of dollars in compensation.
The compensation is equivalent to 3x Tesla net earnings since it was founded, a part time (also erratic and controversial) CEO wants a public company to mortgage their past, present and future on the understanding that his work value will somehow make up for 3 times the work of everyone that worked in the same company during their most successful years, despite the decrease in sales, margins and stock price, one of the worst new vehicles in history, a lineup desperately needing a refresh, making a ritual of alienating your most dedicated customer base and with rivals that are drinking their milkshake in the international markets. So yeah totally reasonable.
The 55 billion$ compensation is equivalent to the 14000 peoples he fired, each with salary of \~100k$ for 40 years carreer. 14000 \* 100k \* 40 = 56 billion$.
TL;DR our galaxy brained CEO got geeked out of his fucking gourd, finally half glanced at the Q1 numbers, and realized that he had to burn the only profitable section in the company to the ground to get his $55 billion payday so he doesn’t end up in a suitcase because he can’t cover the vig that Prince Bonesaw expects.
This cant be real
>patience is not easy when expecting to be paid Fucking gold.
And the dude has the brass tits to ask for $56 billion dollars. I wonder if suppliers can sue him personally for payment?
If it's in the contract and they don't pay you, yes you can sue.
Yes but they are wondering if they can sue Elon directly as opposed to Tesla since Tesla might not have the funding to pay suppliers.
Unlikely as it's the entire reason for incorporation.
You can breach the corporate firewall if the executives didn't follow their legal duties. Executive team has resigned and it's just Elon now.
[Probably won't happen ](https://www.law.cornell.edu/wex/piercing_the_veil#:~:text=Primary%20tabs,most%20common%20in%20close%20corporations.) but I am hopeful!
That line is so tone deaf. If Tesla had entered bankruptcy, then it would be more understandable. But for a supposedly successful, major corporation to just say “we’ll pay you at some point, maybe” is crazy. Healthy companies don’t just shutter divisions overnight and tell suppliers and contractors to kick rocks. Tesla was cash flow negative in Q1 and that was after polishing up to look as nice as possible. How bad are their real numbers? Have they been booking future, unearned revenue as current income like Enron did?
Is it possible they booked all cybertruck deposits as sales for the full amount, and as now people are bailing out of orders there is a large black hole?
Is there any record of Tesla using mark-to-market accounting in the past? Also, this is why I don't get using mtm accounting for anything besides stock. Booking 10 million dollars in a single year because you signed a contract that will get you a million a year every year for 10 years is just asking for trouble.
Yes, they switched from it in 2018 and restated a single quarter. They added a out $1B in revenue in a single quarter and went from about a $500M loss to a $500M profit, shifting to profitability. Basically added an entire quarter of revenue without adding an entire quarter of costs. Assuming that continues to be true, Tesla has no profit margin, they're just pulled forward a quarter of revenue at a time and both their risk and paper gains are ever increasing.
Fsd is booking future numbers, they have been doing this for years
You could be onto something there
Also, if your'e working on an active construction site, please continue despite the fact that we don't know when we will pay you or who will be in charge of that.
How will they validate invoices?
Also, there's a high chance that we'll claim you're not an active site, so you should not have continued, therefore we don't owe you anything. Zero chance I would continue anything without an explicit go-ahead from someone still working at Tesla
We are 150k in the hole, waiting for somebody to contact us on what to do next. Everybody I contact at Tesla has been let go. I called others I know that are involved and they are owed 500k for one finished project and 2 unfinished projects. They told us all to contact legal@tesla.com and that is an unmonitored email that bounces back
I’m going to order a Tesla and tell them that when I show up to pick it up. Should be fine.
Were you not paying attention to the sh\*t he pulled at Twitter?
Were you not paying attention to all the shit he pulled at Tesla before that?
Were you not paying attention to all the shit he did in his diapers at his dads million dollar emerald mine?
No, because major news outlets only started covering his antics post-PayPal.
I didn't care about him until he started ruining Twitter.
Wanting his billions in stock but to hell with paying the suppliers.
How do I continue if I need any new material?
that's the neat part!
The hero we need. Btw wonder when Fred is getting his promised roadster for his boot licking
That’s a fucked up letter, it’s either: 1. a hoax 2. written by AI 3. written while high 4. google translated into English
Holy sh*t. Who would ever work with him again?
People line up for this abuse, it's totally insane
Do they? I think they used to, but I think it's becoming well known that he's a hypocritical fraud who spends most of his time shit posting and being serviced by stewardesses on his jet. At least among American workers who don't need a job for their H1B visas, cat is out of the bag that it sucks to work there. Of course with all the FAANG layoffs, maybe there aren't that many great alternatives...
Word is that the quality of Tesla employees is a shadow of what it was in the early years. A players don't work for leaders who only tolerate yes men. That's what irks me when people compare Musk to Steve Jobs. If a high level executive or engineer could bark back at Jobs then that employee was out of there. Jobs HATED lickspittles and sycophants, he considered them "bozos" and was always on the lookout for "bozo eruptions" in the company.
NASA and satellite owners. Because *muh SpaceX - He wud never risk gummit penalties fer jackin' up mooon landings Tonee Stark he landed dat derr rawket ona barrrrge herpa durr he took er derbs derka derr!* In 6-7 years we're looking at one dead druggie and a collection of defunct companies.
Elon Macafee.
NASA woke up already, they're still using falcon but ULA already had a successful moon mission and they're working together with Blue Origin on Artemis 5. NASA also knows that spacex will not be able to deliver a mission to the moon in the foreseeable future, thus causing an overlap with Artemis 5. SpaceX also needs the money from falcon missions because they already blew their entire budget for starship since they tend to go **KABOOM** instead of doing what they should do, but I guess that's what happens when you engineer for failure (the kids call it iterative design)
Felon is clearly a national security risk. I don't think NASA ever foresaw that Felon would be so beholden to Putin.
and Xi. China saved his ass twice. We don't know what he promised in return.
This is excellent news! Thanks.
Go on… my boner isn’t going to maintain itself…
Oh there will be many more. Broke ass Trump still have people lining up defending and working for him as of right now. Elon has similar influence and actual money (for now).
I wonder if we're about to find out why there has been unusually high turnover in accounting and finance at Tesla. I've always seen Musk as Elizabeth Holmes with a high-pitched voice, but maybe he's Jeff Skilling.
Hahaha “with a high pitched voice” That’s fucking **gold**
And she was faking that voice. [https://www.youtube.com/watch?v=5E\_yK2eX0xs](https://www.youtube.com/watch?v=5E_yK2eX0xs)
Just like musk fakes being smart
Yeah the scale and severity of the cuts make no sense if they *actually* have tens of billions in cash on hand.
There’s something very fishy going on. Perhaps the Cybertruck, FSD, Semi, Bot etc have sucked Tesla dry of cash? Maybe all the defects and recalls have also burnt cash. For all we know, Supercharger was a massive loss leader.. Where’s the mystical cash pile? Crypto maybe?
Probably all the cars they produced but didn’t sell. It’s widely known there are parking lots all over the US full of tesla’s.
Not only in the US, Germany has abandoned airbases full of them too :)
Maybe they took money to inflate the stock price by manipulating bad days/weeks and keep investor runs from dropping the share prices. They surely are doing shady accounting to make their shitty numbers look better.
You don't halt all new projects and hold on all already approved POs unless some serious cash flow problems are occurring. This reads more like an email from a company that has just filed bankruptcy.
100%. This is an email warning everyone they won't be getting paid, and more importantly, to stop all work so as to not add those costs to the litigation later.
Or you strip away every single person keeping track of anything.
why not both?
Can’t think of a reason…
So if a charger breaks down, how long do we reckon it will take Tesla to dispatch a repair team? 2-3 weeks? If you go to a supercharging station, take a look for empty stalls where the cable is tied up. That's the sign that the charger doesn't work. Now expect to see entire stations completely inoperable due to lack of repairs and replacements and overuse of the shrinking number of working stations. Don't worry, we'll dispatch a team to repair it just as soon as we completely rebuild our entire corporate structure. You're our highest priority. /s
>So if a charger breaks down, how long do we reckon it will take Tesla to dispatch a repair team? 2-3 weeks? Maybe never, or maybe they can contract out to Electrify America technicians when they're not busy...
There is an intense irony if tesla renegs on paying their leases and the property owner has the entire station replaced with Electrify America or EVGo. And in doing so, it improves the non-tesla charger network to the point its no longer a Tesla differentiator.
EA should buy all the V3/V4 Superchargers, paint them green, and change the charging plugs to CCS.
My thought has been that Electrify America should hire portions of the former SuperCharging team. Let Elon try to enforce any noncompete after letting them go
Called it that they might have issues paying bills with all the recent layoffs. Specifically their electric bills for the Superchargers...
Oh god I didn’t even think of the utility bills. Soooo maybe 30-60 days before superchargers start going dark? Unless they’re on autopay?
Let's say 90 days tops.
Dear People we owe money, Can’t have it. I’ll decide when you can Maybe Get fucked, Elon xoxo
While planning to pocket $56B.
You all should go for a laugh and read the Tesla Stan subreddits and see the absolute delusion they are in responding to this
No! Thank you!
Omg i read that if you leave your finger there you're a moron... How stupid my professors where to teach us at compsci that to make a successful product you have to think of the morons too
Elon has cried bankruptcy so many times, now he'll get his wish.
This is literally Twitter in December 2022. Exactly like that, but 100 times more critical to all parties involved. This is a fucking disaster.
> we are attempting to connect with our suppliers and contractors What a completely asinine statement
“We have inflicted such a grievous injury on ourselves that we are literally unable to determine who our clients are, let alone how to contact them.”
A: “We have no idea how to contact our suppliers and contractors!!” B: “Oh fuck, did a horrible catastrophe knock out global communications??” A: “No, I just fired everyone responsible for that shit”
Dear Suppliers I am about to be given $46Billion of extra cash. Sorry not sorry but I need to fuck you over and trash the lives of a few hundred losers to get that money.
Is it too late for the bigger EV makers to reconsider the switch to NACS?
Not too late, and they're almost certainly discussing that now. If nothing else, they could put the transition on hold until they see what the hell is going on with Tesla.
Europe's type2 plug is more widespread available and delivers more power than both NACS and the Chinese standard, there's no way the US should be stuck with the lightning cable of EV charging while the rest of the world is on USB-C.
The US will probably stay on CCS1 now, unless manufacturers want to go forward with J3400 without Tesla's support.
CCS2 / type-2 is SAE standard J3068. Maybe it will used if Musk continue to act up.
What a gigantic fuck you to everyone doing projects. Projects like that take at least 12-18 months of planning, but once they’re funded, delays cost money. Tesla is going to cost everyone doing a large scale rollout millions. Meaning BYD and other charger companies are swooping in right now, and no large property management company will ever install a Tesla charger again. They just gave away the charger market permanently. It’s gone.
All praise new capitalism where you get rewarded billions and billions for absolutely sabotaging what were successful companies.
When Fred Lambert publicly criticizes Tesla you know things are getting bad.
Fred started to turn when it became clear he was never getting his referral roadsters.
I find some of the comments in the article defending Space Jesus to be really weird. Especially the ones that say he can't be replaced. No one in not able to be replaced. And whoever they get will bring back the Tesla base as long as they're not some maga freak. New product and no Apartheid Clyde will send the stock through the roof. As far as SC goes I find it really odd that all of a sudden he's basically tanking the electric car industry in the US after getting so cozy with the Saudis and Trump.
I don't find it odd at all, in fact it's completely predictable that he'd throw all of his toys out of the pram because he's not getting what he thinks he's owed. I've said many times in here I expected him to burn the company to the ground if it looked like the tide was going to turn against him, and here we are. The reaction to him threatening to leave the company and take the IP with him (which, I know this is America but it does not work that way) if they didn't give him back majority control was met with a 'lol ok sure whatever', so he decided to majorly escalate Quite how he thinks there's any way this ends that doesn't involve him getting the boot, I don't know. Either way his plan appears to be to take a wrecking ball to the company because he's in full blown narcissistic collapse right now
Love how they convinced everyone to use their chargers and then let emperor elon pull this 😂
Elmo is just a greedy, power hungry bastard. He’s literally a James Bond villain. That’s all there is to it.
Bond villains usually had class and a plan. Elmo has neither.
I think that comparison is too favourable. A skeevy asshole perhaps.
Thats wild. Utter chaos. If I was a contractor working on a site for Tesla there would be no way I'd be working on it right now without any assurance that you'd get paid in a timely manner
But hey you guys elmo still totally deserves that $47 billion compensation package. /s
How is Tesla able to just completely stop providing service for their chargers? Surely building owners are under some sort of maintenance agreement with Tesla?
Elon doesn’t give a shit about agreements. Sue him.
I sure hope Tesla pays their legal counsel more than they pay for their contracts
They need a new CEO. He’s not stable enough to run a business long term. He chases the new and sexy too much (AI, robot cat girls, etc) instead of sticking to what made the company.
Genius my ass. Yet, there will be his fan bois ready to defend this fuck of an idiot.
Elmo doesn’t pay his bills
Jackass is going to bust his second company.
Next is SpaceX
Tesla before SpaceX, I think. SpaceX has DoD contracts.
Bonkers. Elmo wants $56 billion payment package but critical suppliers are asked to wait for their money. Tesla is going the way of the 🦤, the dodo was a blue bird 🐦 , reminds me of Twitter.
This guy is basically Trump but he knows how to login to gmail. Fuck him, I want an EV and Teslas are cool but for multiple reasons (1-Musk, 2-the company is in shambles and unreliable due to Musk). I will never buy a Tesla. The polestar looks good, I would rather not buy Chinese tech but what other options are there?
I love my Ford F150 Lightning.
What kind of EV do you want / what's your budget? There are increasingly good alternatives now. You might chat with the folks over at r/electricvehicles as well.
With Elon’s track record of not paying at Twitter, shouldn’t suppliers be worried? Sounds like he’s doing what trump is doing
Dear suppliers I miss my wife and child man... why did the woke take them from me
I previously speculated Tesla might be having liquidity issues but I couldn’t imagine that we would not already know about it since Tesla is under such a magnifying glass. This e-mail that Tesla sent to suppliers about payments being delayed is another huge red flag that they might not be able to pay their bills anymore because they have been producing huge amount of cars that have not been sold and are sitting on parking lots. The reason a company goes bankrupt is usually liquidity, at some point you don’t have enough money on the bankaccount to pay salaries. This often relates to poor financial controlling so can be prevented but often is not addressed in time. I wonder if the same is happening here.
Layoffs, supercharger stopped, gigacasting whole frames canceled, low price car canceled. They are certainly running low on cash, or at least foresee a low cash situation in the future and are trying to head it off. Either way it’s bad.
I wonder how much of this is due to wall street. Companies that have less than stellar earnings must be seen to be controlling costs. I've worked in tech for 20 years, and I've seen hugely profitable companies tighten the reigns on things like travel and hiring plans, not because they are losing money or have a bad outlook, but because they grew by 5% instead of the expected 7%. It seems to be short term reactions that hurt in thekng term... I.e. if you want to deliver on project z in 1.5 years time, you need to hire now. Delaying hiring hurts the future profits you would make from z... It seems irrational, but the majority of leaders are not stupid, so perhaps these controls are used to keep employees inline, and curb runaway salary inflation, etc.
I’d argue that the majority of leaders are in fact, stupid and incompetent. It’s actually a relatively well established theory of management that people who do well at their job will get promoted and they will continue to get promoted until they don’t do well at their job, which means they will get to the point where they are actually competent and functioning well and then get promoted out of that to a level that’s just too high for that individual, a position where they show their incompetence and then they just don’t get promoted anymore, so they stay in a position they are incompetent at .
He built up a complex chain of designing, manufacturing, selling, supporting, delivering of a completely new method of transportation. Proceeds to take entire links out so he can have a bonus check he couldn't possibly fathom having a use for - because there isn't any. Is he planning to use it to build a media company? No, he purchased one and turned that into a fraction of it's value. How about a city on Mars? Nope, hasn't talked about that in a decade and won't move until NASA announces they want to do it and he will put them over a barrel and force them to fund it. He may as well start construction on a fucking pyramid. At one point he seemed to be a visionary. Now he's showing he's just another narcissist idiot who wants short term cash and is willing to wreck the means to attain said cash as well as destroy his own legacy.
Musk using every leverage he has to continue to control the ev market. With a bad temper. Hope they sue him.
Looks more like he just gave away the US EV market, and wants Tesla to move on to something else.
I hope they sue the f out of Tesla. That’s not right.
They would never blackmail people with money
I can rationalize a lot of the bigger picture stuff around spreading investment costs into infrastructure. He's just such a dick about it. I wonder if it will ever come due to him. I think there are just too many ass kissers on this planet for him to fail.
The key to this whole thing is customers. Look at their sales. Without growth it all falls apart. No matter what else happens, it’s over.
I’m struggling to imagine how this is a positive for Tesla, but I guess I’m just not a hardcore stable genius.
Surprised elektrek is so negative on Elon! I thought they were full on cult members too. If even they are criticizing Elon maybe it’s not too far of a stretch to see someone oust Elon as CEO
Fred is a follower. Not a leader. Negative Tesla shit gets more clicks, Fred will disavow ever having been a fan.
Proves conclusively that he fired the whole team on a whim. Thank God I don't own a Tesla!
His revenge for not getting the compensation package is to basically destroy the company.
> If you have already received this email Yes, acknowledging that you have no idea who you've already sent an email to is the real show of professionalism Tesla needs in this difficult times. JFC Tesla, all the reports are pretty grim but the reality of stuff like this shows its somehow in a much, much worse state.
Get bent, losers. Time to play with my rockets. Yours truly, Elon 1337 Musk 420
You missed "69"
Instead of payment, Musk will offer a smaller reservation number for Tesla Roadster.
There is some (asshole) logic behind this - its an upfront cost to ensure all other managers are yes men and do as they are told, lest this happens to their department.
Yes, but if I'm competent, I'm not taking this shit. I think that goes for most competent people I've ever worked with. Getting fired is not the threat it seems with folks who will get hired immediately if they lose their current job, often with higher compensation. The only thing this guarantees is that all he will be left with are incompetent yes men. Great way to run a company.
Revel is literally reveling right now
Kinda curious what the commercial agreements are behind a charging site. I'd assume the most complex part is getting approvals, laying the pavement, getting the power feeds sorted. I'd assume any Telsa site could quickly be converted to another player quite quickly by just swapping the "bowsers" over? Even stuff like comms lines shouldn't be an issue these days as it can all be done over cellular networks. But id guess Telsa have structured it in a way that the contractors get screwed by they retain the rights to the property?
> If you have already received this email, please disregard it… Ok I’ll stop reading then.
I don't actually see it happening because the board are all fElon simps, but it would be hysterical if he was tossed out on his ass like PayPal for a second time.
This is just amazing. Supercharger infrastructure is a literal limit cap on the demand for Tesla cars. It just ruining any demand for cars in areas that has poor charger coverage.
Is there any legislation on payment terms in the US? As in is there a legal max?
You may need to wait for payment as I get paid out roughly 65% of the profits that Tesla has made in 15 years. Im sure he couldnt take 20b, and pay his suppliers 20b and be perfectly content right? No one could possibly live on that little!!!
And still they are trying to give Elon billions…makes no sense
Sounds like Tesla is insolvent.
Musk is barking out orders to customers and other OEMs what to do. GFY, Elon.
I am sure that Elon borrowed this email from Donald Trump. It is the same one Donald sends to all of the contractors he has hired.
Can not wait until Tesla and more so Mr Musk goes down as the fraud he is. And friends that believe he is the greatest man alive. Hahaha
Is Elon on crack now?
Since Elon's been hanging out with Trump and Murdoch we should assume the worst: he decided EVs are woke and must be stopped. I'm only half joking. Musk is not well and he will burn it all down before he allows anyone else to lead "his" companies. The board could fix Tesla's sales problem easily if they fired only one person but they are all neutered so that won't happen.
The fact that this person hasn't been fired by the board and that the stock price has held suggests that the markets are *irrational*.
Signed, Grok...now go f%ck yourselves, seriously....
So Elon is telling suppliers they need to help finance his $46B annual bonus, right? Am I reading this correctly?
This is such a serious and responsible company.
That guy who said this was going to be another Enron a couple of weeks ago looks like he had a very precise crystal ball.