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Tesla will lay off about 14 thousand employees — 10% of the total staff

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Володимир Скрипін

At the beginning of the month, Tesla for the first time in four years reported about falling sales of electric vehicles, and now the market leader is preparing to lay off at least 14,000 employees, —10% of the total staff (140,473) by early 2024. About this write Electrek and Reuters, who received a copy of an internal letter of instruction sent on behalf of CEO Elon Musk.

It is not yet known which Tesla teams will be laid off. In an address to employees, Tesla CEO Elon Musk called the decision to lay off the worst, but forced and necessary.

«This is what I hate the most, but it has to be done. It will allow us to be more lean and innovative before the growth phase in the next cycle».

Elon Musk,

Co-founder and CEO of Tesla

In the first quarter of 2024, Tesla “defeated” BYD after the first knockdown in the last quarter of 2023 and regained leadership in the global electric vehicle market. But Tesla’s sales fell year-on-year for the first time since the coronavirus year of 2020: Elon Musk’s company shipped a total of 386,810 electric vehicles— 8.5% less thanin the same quarter of 2023 (422,875).

Tesla’s full financial report will be published on April 23, so we will be able to find out how much the key financial indicators will deteriorate — just remember that the consequences of of the price war were not long in coming. As of now, Elon Musk’s company has exhaustedthe potential for further price reductions in Chinawhich remains the company’s largest market, andprofitability continues to fall amid slowing growth in Europe and the US.

In early April, Reuters reportedthat Tesla has changed its mind about producing an affordable Model 2 electric car for $25,000, which Musk first announced in 2020and instead decided to focus on the new robotaxi, which is due out in 2020 We’ve already been there several times. Elon Musk responded called the Reuters report as a “lie” and announced the announcement of Robotaxi on August 8. There is an assumption that Tesla did not actually cancel the release of the Model 2, and on August 8, Tesla will present two identical-looking car models: one will be a robotaxi without a steering wheel and pedals, and the other will be a compact car. At the same time, Tesla may announce the start of production of the Robotaxi and postpone the version with steering wheel and pedals to a later date.

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