Austin, April 22: Tesla layoffs in the latest resulted in 10% of the total workforce leaving the EV company amid financial struggles, 20% in some departments. Elon Musk’s Tesla layoffs even affected the high-performing employees. According to a report, Elon Musk wanted to lay off Tesla employees by one-fifth to match the quarterly vehicle delivery drop.
According to a report by Bloomberg, Tesla’s stock slumped amid declining sales, confusing product decisions, and more price cuts. The report mentioned that Elon Musk-run Tesla had been seeing a decline in the EV market in China, weakening its dominant position in the country. Following these troubles, Tesla CEO Elon Musk announced to visit India’s Prime Minister Narendra Modi to enter the country’s promising electric vehicle market. The report also mentioned that Elon Musk’s Robotaxi dreams plunged Tesla into trouble. X App in Tesla Cars Coming Soon: Elon Musk Says Tesla Cars To Soon Have an Integrated X Experience.
The report mentioned that Elon Musk’s India visit, scheduled for April 21 and 22, was cancelled at the last minute. According to another report by Business Insider, the tech billionaire wanted his company to cut 20% of the workforce at one point. Tesla reportedly delivered 3,86,810 cars in Q1 2024, which was a 20.1% price drop as compared to the previous quarter. The report said that since 2022, the price drop was the lowest quarterly performance. Elon Musk announced Tesla layoffs last week, which resulted in a 10% cut in jobs, and he showed his concern about the duplication of roles and job functions in some of the areas of the company. Tesla Recalls Cybertrucks Over Accelerator Pedal Issue, Affects Nearly 4,000 Units.
The report said that Tesla employs around 1,40,000 people globally, but declining sales due to rising competition from China’s BYD Auto have led to layoffs. The report also highlighted that Elon Musk’s Tesla layoffs aimed to keep the company lean, innovative, and ready for the next growth phase. Elon Musk expressed that he hated cutting employees from the company but said some things must be done.
(The above story first appeared on LatestLY on Apr 22, 2024 01:28 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
