Technology 3 min read

Elon Musk to Block Contractors Without Recommendation from Tesla Employees

Aerovista Luchtfotografie /

Aerovista Luchtfotografie /

All contractors and sub-contractors without recommendations from Tesla employees will be blocked from entering Tesla factories starting Monday.

For the past weeks, Tesla CEO Elon Musk has vocally expressed his concern about the contractors and sub-contractors working on his car factories. This comes amidst the delays and delivery failures currently being faced by the car manufacturing company.

Tesla is reportedly set to purge its factories of contractors by cutting off their access to the company’s facilities. From now on, the only way for contractors and sub-contractors to enter the factories is if there are Tesla employees willing to vouch for the quality of their work.

In an email sent by Musk to his employees, the tech mogul said:

“I have been disappointed to discover how many contractor companies are interwoven throughout Tesla. Often, it is like a Russian nesting doll of contractor, subcontractor, sub-subcontractor, etc. before you finally find someone doing actual work. This means a lot of middle-managers adding cost but not doing anything obviously useful. Also, many contracts are essentially open time & materials, not fixed price and duration, which creates an incentive to turn molehills into mountains, as they never want to end the money train.

There is a very wide range of contractor performance, from excellent to worse than a drunken sloth. All contracting companies should consider the coming week to be a final opportunity to demonstrate excellence. Any that fail to meet the Tesla standard of excellence will have their contracts ended on Monday.”

Read More: Elon Musk Kind of Explains Tesla Earnings Call Outburst

While the contractors were reportedly given enough time to prove their so-called excellence, Musk used firmer words during Tesla’s Q1 2018 conference call held last week.

“The number of third-party contracting companies that we’re using has really gotten out of control, so we’re going to scrub the barnacles on that front. It’s pretty crazy. We’ve got barnacles on barnacles. So there’s going to be a lot of barnacle removal,” Musk was quoted as saying.

This is not the first time that Tesla resorted to mass lay-off following reviews. Last year, the company reportedly fired hundreds of employees after receiving results of their performance reviews. It’s not quite clear yet how many people will be affected by the company’s decision, but it is certainly set to add to the controversy surrounding the company and its owner.

Are you in favor of Tesla’s decision to remove contractors and sub-contractors from its factories?

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Chelle Fuertes

Chelle is the Product Management Lead at INK. She's an experienced SEO professional as well as UX researcher and designer. She enjoys traveling and spending time anywhere near the sea with her family and friends.

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