The layoffs unveiled in Buffalo include a 14% reduction in headcount there.
Tesla acquired the Buffalo factory after it completed a $2.6 billion acquisition of solar installation company SolarCity in 2017.
Tesla's acquisition of SolarCity has been widely criticized as a bailout for the struggling solar company that has deep ties to Tesla's CEO and board of directors. Musk funded and co-founded SolarCity with his cousins, Lyndon and Peter Reeve, and served as chairman of the board there. Another Musk company, SpaceX, has purchased SolarCity bonds, and if the company goes bankrupt, it would lose its investment as well.
Empire State taxpayers have donated around $1 billion to build the Buffalo plant, including equipment purchases, with the hope of supporting the creation of thousands of high-tech jobs in the region. While Tesla has said it will manufacture solar panels at the Buffalo factory, its efforts to grow its solar business have faltered over the years.
In 2023, solar power will be popularized by Tesla decreased To a total of 223 MW, down 36% from 348 MW the previous year. This marks Tesla's lowest level of solar deployment since 2020 when it reported 205 megawatts.
Tesla's energy division still generates most of its revenue through sales of backup batteries, also known as battery energy storage systems, which are used in residential, commercial and utility projects.
Instead of manufacturing solar panels as its core business in Buffalo, Tesla assembled Supercharger equipment there and previously moved part of its Autopilot data tagging team there. The company also told shareholders it would build supercomputers in Buffalo.
Early this month, Reuters reported Tesla will focus its efforts on automated taxi technology and cancel plans to produce an affordable electric car.
On Tuesday afternoon, Musk wrote in an article mail On his social network
Tesla has not yet said whether the company will stick to its 2023 “master plan,” which laid out “a proposed path to a sustainable global energy economy through end-use electrification and sustainable electricity generation and storage.”
Tesla plans to discuss first-quarter results with shareholders on April 23, and executives are expected to reveal more about the restructuring and strategy moving forward after that.
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