When it comes to revenue per employee, Tesla behind Ford and General Motors

When it comes to revenue per employee, Tesla behind Ford and General Motors

When it comes to revenue per employee, Tesla behind Ford and General Motors

With over $97 billion in sales last year, Tesla employed over 140,000 people, or $690,000 for each of them.

When it comes to revenue per employee, Tesla behind Ford and General Motors.

The US automaker's latest financial report reveals that Tesla, the top manufacturer of electric vehicles (EVs), is trailing behind in the amount of income earned for each of its workers, even as CEO Elon Musk is apparently mulling layoffs.

With over $97 billion in sales last year, Tesla employed over 140,000 people, or $690,000 for each of them.

In contrast, Ford Motor will earn $937,000 for every 173,000 workers, and General Motors will earn more than $1 million for each of its 163,000 employees in 2023.

Following Tesla's January warning of "significantly lower" sales growth this year, investors started to worry about lackluster EV demand and growing competition.

Fears of layoffs have been raised by Bloomberg News, which claimed on Wednesday that Tesla, which is becoming more and more focused on expenses, has questioned managers whether each employee's employment is essential.

Although Tesla's market valuation has dropped by more than $180 billion in 2024, the company's shares increased by more than 1% on Thursday. At $603 billion, Tesla's valuation now trails that of Broadcom, a semiconductor manufacturer, by a little margin.

Once the envy of rival manufacturers, Tesla's gross margin dropped to a record low in the December quarter. Its sales increased by 3% to $25.17 billion during the same quarter, marking the weakest growth pace in almost three years.

Although Tesla's revenue per employee fell short of that of GM and Ford in the previous year, it made up ground in 2022, reaching $637,000. Recent filings reveal that Tesla intends to add around 10% more people worldwide in 2023.

Over the last two years, Wall Street's IT behemoths have laid off hundreds of thousands of people and lost some of the employment they created during the coronavirus outbreak. They have often kept up their sales growth.

The meta platform said last week that it has reduced costs and expenditures by 8% and increased revenue by 25% for the December quarter, after the elimination of almost 21,000 positions until the end of 2022.