Tesla boss Elon Musk told executives at the electric car maker he needed to cut staff dramatically, Ford outlined plans for a $3.7 billion investment in electric vehicles and Stellantis was charged for selling vehicles that do not meet emission standards. All this and more in The morning shift for Friday, June 3, 2022.
1st Gear – Tesla will reduce by 10% jobs
In the same week as Tesla boss Elon Musk has warned employees at the electric car maker to return to office or quit, it is now suggesting the company should lay off up to 10% of its staff.
According to Reuters, the CEO of Tesla sent an email to company executives warning that he had a “super bad feeling” about the economy and that it was time to “suspend all hiring worldwide”. From Reuters:
“Nearly 100,000 people were employed at Tesla and its subsidiaries at the end of 2021, its annual filing with the SEC showed.
“Musk has warned in recent weeks of recession risks, but his email ordering a hiring freeze and staff cuts was the most direct and high-profile message of its kind from the chief executive. a car manufacturer.”
The report says Musk didn’t elaborate on the bad feeling which led to the call to cut staff. But this follows his recent warnings that we could be in a recession. On Twitter, he warned that the recession was coming but it was “actually a good thing” for some reason. He argued that “it has been raining money on fools for too long. Some bankruptcies have to happen. I guess that means I’m not a fool?
Although they called for a hiring freeze, Tesla currently has nearly 5,000 LinkedIn listings. And the move comes less than two months after Tesla outlined its ambitious hiring plans for its new Texas location.
2nd Gear – Ford invests $3.7 billion in electric vehicles
While Tesla may be looking to make cuts, Ford is doing the exact opposite. and announced an ambitious funding round to support the development and construction of its next-generation vehicles, including electric vehicles.
According to CNNthe Blue Oval will invest $3.7 billion in three Midwestern states to ramp up production of new electric models, build a new Mustang model, and increase the construction of commercial trucks and vans.
Ford will spend $2 billion in its home state of Michigan as part of an initiative to create 2,000 new jobs and increase production capacity at its Lightning F-150 electric pickup. In Michigan, the funds will also support the construction of a redesigned Ranger pickup and one yet to be revealed. new Ford Mustang.
The company will also invest in its Ohio and Missouri plants, according to CNN:
“Ford will spend $1.5 billion at its Ohio assembly plant to build a ‘new electric utility vehicle‘ to be introduced around 2025. The company will also invest about $100 million in an engine plant and a transmission plant in the state.
“In Missouri, Ford is spending $95 million to add an additional plant shift to produce gas-powered Transit commercial vans and electric E-Transit vans.”
In total, the spending will help create 6,200 unionized manufacturing jobs at Ford’s US plants.
3rd Gear – Stellantis Loaded on Emissions
US lawmakers have charged Stellantis with criminal conspiracy in a multi-year investigation into emissions fraud surrounding diesel-powered vehicles.
Automotive Nnew reports:
“Government Criminal Intelligence accuses FCA US of conspiracy to defraud the United States to violate the Clean Air Act and commit wire fraud, said the automaker deceived U.S. regulators and sold the vehicles” knowing that these vehicles did not meet U.S. emissions standards” and also deceive customers “by making false and misleading statements”.
“Stellantis declined to comment.”
Last week, Reuters reported that Stellantis intends to plead guilty to the allegations, which relate to its “efforts to circumvent emissions requirements” for certain diesel-powered Ram pickup trucks and Jeep SUVs.
Stellantis is expected to be fined up to $96 million as part of the settlement, and further payments could bring the total penalty closer to $300 million.
A final plea hearing for the case is scheduled for 1:30 p.m. today in Detroit.
4th gear – Tesla slams on the brakes
The NHSTA has its eye on Tesla and its level 2 autopilot driver assistance system for some time. And now he’s demanding answers from the electric vehicle maker after more than 750 Tesla owners complained their cars braked for no reason when the system was activated.
In a 14-page letter seen by AP News, NHSTA is asking Tesla to share “all consumer and field reports it has received of false braking, as well as reports of accidents, injuries, fatalities, and property damage claims.” From AP News:
“In the letter, NHTSA asks for the initial speed at which the cars began to brake, the final speed, and the average deceleration. It also asks if the automated systems detected a target obstacle and if Tesla has video of the incidents. braking.
“The agency is now looking for information on warranty claims for ghost braking, including owners’ names and repairs performed. It is also looking for information on Tesla’s sensors, any testing or investigation of brake issues, or if changes have been made.
Also, in order to learn more about how Tesla tested the systemNHTSA asked the company to share details about how it detects metal bridges, vehicles of different sizes, and reflections or shadows caused by snow or heavy rain.
Tesla has until June 20 to share the desired information with NHTSA, but says the company can request an extension if needed.
5th gear – GM hails oneAutonomous taxi
Cruise, the self-driving car company backed by General Motors, has become the first company of its kind to receive a permit to charge passengers for rides in its self-driving vehicles.
Reuters reports that Cruise yesterday obtained the permit to transport paying passengers in driverless cars, becoming the first company to do so in San Francisco. According to Reuters:
“Licensing was Cruise’s last hurdle in California. Cruise said it will launch paid services in the coming weeks using up to 30 driverless Chevrolet Bolt electric vehicles.
“The California Public Utilities Commission approved Cruise’s permit Thursday night in a 4-0 vote.
“Commissioner Clifford Rechtschaffen said at the meeting that the panel had ‘taken a cautious and incremental approach’ to regulating autonomous vehicles.”
Permit rules say self-driving taxis must be limited to 30mph, must stay in an area that avoids the busy downtown area, and must stay off the road “in heavy fog, precipitation or smoke” .
The decision to allow driverless cars on the streets of SF came despite warnings from local emergency responders. They warned that a “Cruise AV briefly blocked a San Francisco fire truck in April, and area police tried to stop a driverless car who then chased them away.
Back: Let’s take a walk
It has been 57 years since the first American astronaut walked in space. In 1965, Major Edward H. White II opened the hatch of Gemini 4 and sank into the abyss.
Neutral: how are you?
It’s the end of the longest short week in ages; how have you been? Are you doing anything good this weekend? I have tickets for a show tomorrow and a friend’Birthday BBQ on Sunday. Iit must be nice!