According to a report by Reuters, Tesla will lay off more than 10% of its global workforce due to declining sales and an intensifying price war for electric vehicles (EVs). The New York Times reports the job cuts will affect about 14,000 people, with two senior executives – Drew Baglino and Rohan Patel – already confirmed to have left the company.
News of the layoffs surfaced after a company-wide email was leaked and reported by Electrek, in which Tesla CEO Elon Musk said, “over the years, we have grown rapidly with multiple factories scaling around the globe. With this rapid growth there has been duplication of roles and job functions in certain areas. As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity.”
“As part of this effort, we have done a thorough review of the organisation and made the difficult decision to reduce our headcount by more than 10% globally. There is nothing I hate more, but it must be done. This will enable us to be lean, innovative and hungry for the next growth phase cycle,” he added.
In Q1 2024, Tesla missed delivery estimates and reported a rare year-on-year (YoY) drop in sales by 8.5% (compared to Q1 2023) with 386,810 units. This represents the company’s first YoY decline in deliveries since 2020 when its operations were affected by the Covid-19 pandemic.
While Tesla does not provide a breakdown of deliveries by region, it is assumed that the decline largely occurred in China, where Chinese EV makers are gaining ground and pushing to expand its export market. Tesla has also reportedly cancelled plans for a low-cost EV which was expected to start at about USD25,000 (about RM120k) due to fierce competition from Chinese automakers that can offer EVs at even lower prices.
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People who dont understand what Tesla is doing is say oh EV is doom etc….what tesla is doing is reducing their general works forcek, as they are progress from an EV car manufacture to a AGI robot manufacture…those worker that has been fire will be repalce by AGI tesla optimus bot
you are spot on. in the beginning they start off with huge employment opportunities in the country they invest to make use of the gov incentives and within the next couple of years, robos takes over and the lay off starts in stages.
meanwhile Tesla workers are applying to join BYD, Chery and Geely.
Mai la negeri kita ..kedah best
X sempat mai kedah beb. Elon dah janji sama Modi untuk buka kubur TESLA di India. X sempa mai
pls lay off some of those uselss sales staff at your showrooms in malaysia
Are they that bad?
if a sales person doesnt earn any commission and the base pay isnt great how hardworking will they be?
In the meantime boleh la apply job to Topuland’s Build Your Wet Dream.
This is already expected. Capitalizing the market when possible, cutting costs when saturation kicks in.
I told you this would happen. The moment he shook the dirty hands of Modi, he got the curse. Confirm bankrupt soon like many other business that stepped into India. This is no joke. The curse is real.
Last time when Elon and Tesla was bankrupt, he shook President Xi’s hand and he immediately became the world’s richest man and Tesla was selling like hot cakes. Same thing happened to Jeff bezos, Bill gates, Walmart family.
Now you know. Keluarkan popcorn and see the collapse of TESLA. Game over