Tesla continues to make headlines. After Elon Musk’s departure from the Trump administration, the self-driving car giant continues to make headlines. Now, Elon Musk’s company has terminated its contract with MPW Industrial Services Inc. (Mobile Power Washing). Tesla recently terminated its industrial cleaning service contract with MPW at its factory in Austin, Texas, leading to the layoff of 80 people.
Elon Musk terminated its contract: the rumors became reality at the end of August
The company, which offers industrial services, stopped operating at a Tesla factory located east of Austin. The rumors became reality at the end of August, after the company led by tech giant Elon Musk immediately terminated its contract.
“MPW will be permanently ceasing operations at Elon Musk’s company facility located at 1 Tesla Road”
According to official sources, the company announced the layoffs immediately upon learning of the news. “We are writing to inform you that, due to the unexpected termination of a significant client contract, MPW will be permanently ceasing operations at Elon Musk’s company facility located at 1 Tesla Road,” read the company’s statement to its employees.
Wall Steet: this move can be interpreted by the markets as a sign that Elon Musk remains confident in the company’s future
Tesla’s stock has soared. Elon Musk has acquired $1 billion in the company’s shares. The tycoon acquired the shares through a trust, causing Tesla’s stock to rise 6% on Wall Street. In total, Musk has acquired more than $2.5 million. According to experts, this move can be interpreted by the markets as a sign that Elon Musk remains confident in the company’s future. Investors reacted strongly to both the news of Musk’s acquisition and the context of the salary package, which places enormous weight on the company’s growth trajectory.
With the move in Austin, the company was setting its future course
This tells us that Elon Musk’s moves aren’t random. Tesla has long been one of the most closely watched companies on the Nasdaq, and investor sentiment is often influenced by Musk’s decisions. With the move in Austin, the company was setting its future course toward some very demanding goals.
Austin: the layoff decision affects 61 technicians, seven team leaders, seven supervisors, and seven managers
Regarding the MPW layoff, the company said, “This notice is being provided as soon as possible due to unforeseen business circumstances, specifically the unexpected and sudden termination of our contract with the customer.” The layoff decision affects 61 technicians, seven team leaders, seven supervisors, and seven managers, according to the mass layoff notice filed with the Texas Workforce Commission on August 27.
Among the layoffs or job eliminations, there were 2,688 Austin employees laid off in April 2024
But they haven’t been the only ones affected. According to the Austin American Statesman, these layoffs are in addition to the elimination of thousands of jobs, both direct and contractor, that Tesla has caused in recent years. In other words, the story began to unfold more than a year ago. Among the layoffs or job eliminations, there were 2,688 Austin employees laid off in April 2024. Furthermore, they are in addition to the extensive restructuring of the electric car factory, which cut 10% of its global workforce by 2024. So this hasn’t been an isolated incident.
Elon Musk, the domino of the media
Of course, this is a major blow for the company, but especially for its employees. As we noted above, Tesla is currently one of the most important companies in the world, so every move and decision Elon Musk makes affects hundreds of people, like a domino.
