The layoffs disclosed in Buffalo represent a 14% reduction in headcount.
Tesla took over the Buffalo factory after completing its $2.6 billion acquisition of solar installation company SolarCity in 2017.
Tesla’s acquisition of SolarCity was widely criticized as a rescue plan for an ailing solar power business with deep ties to Tesla’s CEO and board of directors. Musk funded SolarCity and co-founded it with his cousins Lyndon Leib and Peter Leib, of which he served as chairman. Another of Mr. Musk’s companies, SpaceX, had bought SolarCity’s bonds and would have lost its investment had the company gone bankrupt.
Empire State taxpayers spent about $1 billion, including equipment purchases, to build the Buffalo plant in hopes of helping create thousands of high-tech jobs in the region. Tesla has announced it will make solar panels at its Buffalo factory, but efforts to grow its solar business have faltered for years.
In 2023, Tesla’s solar installations totaled 223 megawatts, down 36% from 348 megawatts the year before. This is Tesla’s lowest solar installation since 2020, when it reported 205 megawatts.
Tesla’s energy division still generates the majority of its revenue through the sale of backup batteries (also known as battery energy storage systems) used in home, business, and utility-sized projects.
Instead of manufacturing solar panels as its main business in Buffalo, Tesla assembled its Supercharger equipment there and moved part of its Autopilot data labeling team to Buffalo. The company also told shareholders it would manufacture supercomputer hardware in Buffalo.
Reuters reported earlier this month that Tesla would focus on robotaxi technology and scrap plans to produce more affordable electric vehicles.
On Tuesday afternoon, Musk wrote: post In his social network
Tesla has announced whether the company will stick to its 2023 “master plan,” which laid out “a proposed path to achieving a sustainable global energy economy through end-use electrification and sustainable power generation and storage.” It hasn’t been revealed yet.
Tesla is scheduled to discuss its first-quarter results with shareholders on April 23, at which time executives are expected to provide further details about its upcoming reorganization and strategy.
