Tesla tells workers on Cybertruck line to take 3 days off

[cyberjeff25]

The corvette factory in Kentucky closed from December 13 to January 6th this year. Getting geared up to build the new zr1 and possibly the ultimate corvette the Zora.

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[Mini2nut]

Tesla is cutting CT assembly line positions due to slowing demand.

https://insideevs.com/news/746965/tesla-cybertruck-production-staff-cut/

 

[YDR37]

I think Tesla learned its lesson a bit from the Model S plaid devaluation fiasco - especially because their margins are barely positive on Cybertruck. As I've mentioned before, I've monitored the used Cybertruck market carefully since introduction. There is no sign of overproduction or collapsing demand there.

There is still not a single Cybertruck on the used market for less than ~$85k. With the non-FS AWD coming in at $80k, this indicates that demand>supply for the time being; and Tesla doesn't seem to be in a rush to flood the market with trucks they are selling at a loss.

Above was posted on December 4, 2024, and it was true at that time. But two weeks later, the floor has apparently dropped.

$80,000: AWD, 10K miles, Florida, private seller.
$82,000: AWD, 16K miles, California, private seller.
$82,995: AWD, 17.4K miles, New Jersey, dealer.

Would assume all are Foundation Series, although only the Florida truck is explicitly listed as such. Maybe it is becoming difficult to sell used FS AWDs at prices much above $80K, given that brand new non-FS AWDs are readily available at $80K.

At some point, used non-FS AWDs should start to become available. You would expect them to be priced even lower, perhaps under $70K.

January 2025 used CT price update: the floor may have dropped again.

$77,995: AWD, 11K miles, South Carolina, dealer. Recent price drop, but previous price not listed.

Relatively low VIN, so would assume Foundation Series, though not explicitly listed as such. Now slightly less expensive than a new non-Foundation.

 

[Mini2nut]

My local SC shows 33 2024 CT's available for immediate delivery. Some are new, some are demo's.

The least expensive one is a demo with 962 miles for $77,360.

 

[Deleted member 17810]

https://archive.ph/GLkVu

"As we continue to assess schedules to meet business needs, we'll be making a change to Model Y and Cyber schedules and we want to ensure that your preferences are considered," the survey said.
Two workers described changing production schedules for existing vehicles as unusual. Typically, such shifts only happen for new vehicles, they said.
The two workers said they were told during meetings with supervisors that month that Tesla was scaling down its Cybertruck team and planned to produce fewer parts for the truck during the first quarter of 2025. The workers said some staff would move to different Cybertruck teams amid the larger schedule changes.
The three workers said the changes are expected to take effect Monday.

Shifting more workers around from giga austin

 

[HaulingAss]

Tesla is cutting CT assembly line positions due to slowing demand.

https://insideevs.com/news/746965/tesla-cybertruck-production-staff-cut/

Do you know how Tesla reduces the cost of their vehicles over time? They devise new, quicker more efficient ways to feed the work stations (for example building automated delivery pipelines) and design work stations to need fewer employees. It's a reiterative process that takes time to develop so everything works in harmony with each employee fully utilized. They don't want to invest in the hardware and new control systems until they get the line working well with manual labor (because they might have to rip it all out if the line needs to be reconfigured).

Fewer employees on a smoother functioning production line equals lower cost per truck and a higher throughput. So I question how the author of the InsideEVs.com article could derive that the reduced headcount is due to reduced demand. Generally a production line takes a fixed number of employees to function and that only changes if the production line is optimized to require fewer employees.

I would be willing to bet they are not slowing the production line down and the Insideevs.com article is just full of hot air. We have plenty of evidence that demand has slowed down, but I think fewer employees is probably evidence that Tesla is continuing to make Cybertrucks more efficiently, not that demand has further slowed. Because demand and price are inextricably linked. Lower price equals higher demand. And fewer employees on a line that is moving the same speed or faster equals lower prices (or at least more pricing power and better margins).

 

[Mini2nut]

I hear what you’re saying BUT when my local SC shows 33 2024 CT’s available for immediate delivery…

 

[HaulingAss]

I hear what you’re saying BUT when my local SC shows 33 2024 CT’s available for immediate delivery…

Correlation does not equal causation, that is the mistake the Insideevs.com article likely made. It's called jumping to conclusions.

The article presented evidence that Cybertruck production needed fewer employees over time, it did not do a good job of showing that was due to falling demand. Because production lines are designed to run at a certain speed. Slowing them down makes the vehicles cost more, not less.

People who WANT to believe something are more likely to jump to conclusions that support their desires. Also, people who want others to believe a certain thing encourage others to jump to those same conclusions with them. IMO, that's what Insideevs.com did here.

 

[HaulingAss]

I hear what you’re saying BUT when my local SC shows 33 2024 CT’s available for immediate delivery…

That's funny, I see well over 33 trucks at my local Ford dealership, and they serve a dramatically smaller sales area than a Tesla Delivery Center. Because there are at least 4 Ford dealerships within a 25 mile radius.

What conclusions can I draw about the high number of heavily discounted brand-new ICE trucks I see? Is Ford in trouble? How come the mainstream media barely mentions this?

 

[DJAlan2000]

Tesla is cutting CT assembly line positions due to slowing demand.

https://insideevs.com/news/746965/tesla-cybertruck-production-staff-cut/

Same fake news that started all this...

Funny how, after 3 days of being 'down', production of the CT was INCREASED...

And yes, they are getting ready for the next NEW version of the Model Y so they will need more people on the 'line' come mid February... But anyone that works at Tesla Tx. already knew that...

I'm surprised there's no story out about them preparing to shut down the CALIFORNIA plant to switch over the new model as well... errr, I mean, because sales have slowed down so much...

You don't SAVE money by shutting down your line for 3 days AND STILL PAYING THE WORKERS (unlike GM/Ford/etc.) to stay home!

 

[CTInProcess]

I don’t think the line is slowing. Tesla workers deserve a break after producing an endless amount of CTS and delivering all of them. Not to mention the great amount of CT’s delivered to Los Angeles for Firefighting support

 

[CTInProcess]

That's funny, I see well over 33 trucks at my local Ford dealership, and they serve a dramatically smaller sales area than a Tesla Delivery Center. Because there are at least 4 Ford dealerships within a 25 mile radius.

What conclusions can I draw about the high number of heavily discounted brand-new ICE trucks I see? Is Ford in trouble? How come the mainstream media barely mentions this?

For sure they are in Trouble, just a few years ago they delivered over 700,000. Last year was just over 600,000. Those 33 trucks you saw a real indication of what’s going on. Compared to CT sales, the F-150 is about to be discontinued.

 

[kpanda17]

For sure they are in Trouble, just a few years ago they delivered over 700,000. Last year was just over 600,000. Those 33 trucks you saw a real indication of what’s going on. Compared to CT sales, the F-150 is about to be discontinued.

But it won’t make the fake news mainstream media

 

[igs]

Is Ford in trouble?

Yes.

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