Tesla Internship Offers Rescinded Amidst Musk's Cost-Cutting Measures

https://icaro.icaromediagroup.com/system/images/photos/16195757/original/open-uri20240502-18-prhzr?1714681186
ICARO Media Group
News
02/05/2024 20h18

Aspiring interns at Tesla Inc (NASDAQ: TSLA) have been left in a state of uncertainty as the company recently withdrew internship offers shortly before their scheduled start dates. This sudden decision has left many students scrambling to secure alternative opportunities, with limited time to do so.

According to Bloomberg, Joshua Schreiber, a student from Miami University, expressed his disappointment after receiving an email from Tesla about flight information, only to discover that his internship offer had been rescinded. The timing of the withdrawal, just weeks before the internship was supposed to begin, took many students by surprise.

Reports suggest that the revocation of these internship offers can be attributed to Tesla's recent layoffs. CEO Elon Musk had previously announced a 10% reduction in the company's global workforce, with further cuts expected. Tesla reported an 8.5% year-on-year decline in first-quarter deliveries, delivering a total of 386,810 vehicles worldwide.

Diana Rosenberg, a Tesla employee, took to LinkedIn to reach out to her network, urging companies to consider hiring the affected interns. The short notice given by Tesla has left these students with limited time to secure replacement opportunities.

The impact of revoking internship offers may not only affect the affected students but also Tesla's talent pipeline. The company has typically hired over 3,000 interns annually, and this sudden decision may have long-term consequences for the company's recruitment efforts.

In addition to the internship withdrawals, Tesla has seen recent changes in its senior leadership. Rebecca Tinucci, the senior director of charging infrastructure, recently stepped down, reportedly after receiving a mail from Musk firing around 500 people from her supercharger group. Musk stated that although the company will continue to expand its supercharger network, it will do so at a slower pace for new locations. At the end of the first quarter, Tesla had 57,579 Supercharger connectors and 6,249 stations globally.

The cost-cutting measures taken by Tesla, including the withdrawal of internship offers, have led to a slight decline in the company's stock price. At the last check on Thursday, TSLA shares were trading lower by 0.29% at $179.47.

As students affected by these sudden changes try to adapt and find alternative opportunities, the consequences of Tesla's cost-cutting decisions on its talent pool remain to be seen.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

Related