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Tesla is one of the stingiest wildly successful companies ever. They're still managing the day-to-day as though they're a scrappy startup that might miss payrol
by woeirua 6y ago
Tesla is one of the stingiest wildly successful companies ever. They're still managing the day-to-day as though they're a scrappy startup that might miss payroll next month. I suppose they can get away with this as long as the stock keeps skyrocketing, but once that ends the low salaries, long hours, and poor benefits are going to come back to bite them badly.
- 0x426577617265 6y agoWhere does their recent purchase of $1.5 billion in Bit Coin fit into this view?
- PietdeVries 6y agoGood question! Why would a company rather invest 1.5B$ in something volatile like bitcoin instead of investing it in the well being of their employees?
- Ekaros 6y agoOr any part of their production and process... Musk has managed to drive the stock price up. But many of his decisions seem questionable from value investor perspective. Or downright self-serving...
- chii 6y ago> instead of investing it in the well being of their employees? because the returns of "investing" in their employee's retirement is not a good ROI for shareholders of tesla. simple as that. There's no humanitarian obligation for tesla to make their employee's retirement great, or any other obligation (other than contractual obligation for payment of wages and benefits already committed). if employees feel that they are short-changed, they _need_ to leave, and let market forces adjust. if they sacrifice their own wellbeing to the "mission" of tesla, that's on them.
- JKCalhoun 6y agoProbably only if the employees unionize.
- dmos62 6y agoThe bitter sweet plus side is that people working there aren't in it for the money.
- treis 6y agoTesla is pretty cash constrained. They needed an equity raise to shore up their cash position just last year. It's trending better, but they've been cash flow negative or slightly positive.