30 January 2019
Tesla Motors, for many the driving force behind the evolution of electric car technology, announced on Friday that it would cut its workforce by 7% following what it described as its “most challenging” but also “most successful” year.
7% of Tesla’s workforce will mean more than 3,000 positions are to go – however, following a year of staff growth of more than 30%, the company will still end up with a net increase in employees over the last 12 months.
There is little doubt that the internal combustion engine is under attack, particularly in the UK, where sales of diesel cars have tumbled due to higher Vehicle Excise Duty charges over concerns about meeting global emission standards – but what will the future hold for the electric car market?
Along with the cut in staff, Tesla also announced a scale-down in production hours for its Model X and Model X series – with a stark but honest admission that the car is simply too expensive for the market.
With the UK government committed to the ban of selling any new petrol and diesel cars by 2040, other manufacturers and ultimately consumers, seem more committed to more practical and less expensive hybrid models that allow the driver freedom to alternate between a standard engine and electric power. They are also seemingly more accessible to the market, with new models of certain vehicles being significantly cheaper and advertising an 80% charge in around 45 minutes.
The bottom line is that sales of new cars are good. It is good for the economy and good for the environment as emission decrease. However, it seems unlikely that petrol and diesel engines will be fully eliminated from UK roads within the next 20 years.
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