AM I NEXT? IS THE HANDWRITING ON THE WALL AT TESLA? (10/07/21)

OCTOBER 7, 2021 — TESLA MOVES HEADQUARTERS FROM PALO ALTO TO AUSTIN, TEXAS

Tesla CEO Elon Musk announced that Tesla is moving its corporate headquarters to Austin, Texas, where a new factory for the Model Y and forthcoming Cybertruck is nearing completion ending its California home after 18 years since its founding in 2003.

MAY 10, 2020 — Original post…

Without a doubt, Elon Musk is one of the finest self-promoters and financial engineers in the history of the United States.

He has managed to take the hard work of others, brand it as his own, and sell it to the government and the public at great profit to himself.

Nobody knows the exact state of Musk’s thinking or the actual financial condition of his various enterprises.

However, historically speaking, many of his bold moves involve publicity stunts that presage another “ask” for more benefits or another round of capital fundraising.

Considering the coming competition from well-financed and competent mass automakers in the electric vehicle space, Tesla’s future is cloudy. Whether Musk can morph from a boutique carmaker to the luxury car market into the mass market or re-positioned as a high-flying (SpaceX) technology company remains to be seen.

So what’s with Musk’s Twitter threat to leave California if his factory does not reopen before he runs out of cash, needs additional government subsidies, or simply fades away?

How much danger does this pose to executives and employees in the various Musk enterprises located in California?

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? IS THE HANDWRITING ON THE WALL AT KARMA AUTOMOTIVE?

Irvine, California-based Karma Automotive, manufacturer of high-end luxury vehicles and owned by Chinese automotive supply company Wanxiang Group, appears to be in difficulty if you can believe the anonymous sources in the trade press.

According to rumors and raw random data, the company's Chinese owner has reduced funding for the company and one should not be surprised by an additional layoff of the majority of the remaining employees in early May.

Some say that the many photos released to the media may have been one-off prototypes and the vehicles and components do not exist in a viable form to be manufactured or sold.

One media source claiming to report on the problems can be found here.

As Karma attempts to transform and reposition itself as a technology company rather than a more limited luxury car manufacturer, we are seeing the stresses and strains of this effort. Notably the past layoff of 260 workers, mostly at its Irvine, California headquarters, and a smaller number at its Moreno Valley, California manufacturing facility.

At the time, a company spokesperson noted...

“As Karma evolves beyond its initial birth as car company and emerges as a technology-focused innovator, there is a continuous need to adjust the size and skillset of its workforce to fulfill the task at hand.

The company has therefore determined it necessary to realign resources in some business functions so it can grow its capabilities beyond just creating and selling luxury electric vehicles. As Karma builds partnerships with other OEMs and start-ups to speed product development, we must staff appropriately to fully leverage and realize the kinds of efficiencies partnerships and collaborations can provide.

The result of that decision is some adjustments at Karma’s Global Headquarters in Irvine, Calif.; the Karma Innovation and Customization Center in Moreno Valley, Calif.; and our Detroit Technical Center in Troy, Mich. Although clearly regrettable for the individuals involved, this action is part of the natural trajectory of a start-up enterprise and underlines Karma’s commitment to remain lean, nimble, and focused on building partnerships to encourage success in a changing and hugely competitive marketplace."

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering

AM I NEXT? NO LOVE AT NEXTEER AUTOMOTIVE

Auburn Hills, Michigan-based Nexteer Automotive, a global manufacturer of automotive steering and driveline products, has announced that an estimated 195 employees will be laid off in Saginaw, Michigan in the midst of an ongoing union contract negotiation with the United Autoworkers union.

According to a company spokesperson, “As Nexteer reported in late 2019, we expected potential layoffs in early 2020 at our Saginaw site. On March 13, 2020, we reduced our workforce as part of Nexteer’s ongoing effort to ensure our long-term future and competitiveness by rightsizing operations in line with customers’ volumes and program needs. While this decision was anticipated, it did not make it easier. We are working with our affected employees to provide support services and help them through this transition. We are focused on securing Saginaw’s future and – as always – remain committed to delivering high quality products and service for our customers.”

According to a union spokesperson, “The loss of work and the reduction of the hourly workforce was something that this leadership team inherited when we took office. This administration has done everything we could to create and preserve as many jobs as possible,” the post reads. "It may not seem like we have been successful as there have been so many of our brothers and sisters impacted, but I can assure you, if it were not for the measures taken by your leadership, there would have been Permanent Layoffs much sooner and the numbers of those impacted would have been far greater.”

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?