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Tesla’s Cybertruck Production Trim: A Prelude to Massive Job Cuts?

Daniel Kim Views  

Due to poor performance, rumors of large-scale layoffs are circulating among workers.
First quarter results will be announced after the market closes on the 23rd.

사진AFP연합뉴스

Tesla has decided to shorten the production line of its electric pickup truck, the Cybertruck, and there appear to be rumors circulating among workers that there will be large-scale layoffs. It is predicted that Tesla will carry out intensive restructuring due to the continued poor performance and the expected slowdown in the growth of the electric vehicle market.

According to a report by Business Insider on the 14th (local time), which obtained internal documents from Tesla, the company has informed workers at the Gigafactory in Austin, Texas, that starting on the 15th, the operation schedule for the Cybertruck production line will be shortened.

The day shift, 6 a.m. to 6 p.m., and night shift, 6 p.m. to 6 a.m., will be adjusted to the day shift, 6 a.m. to 5 p.m. night shift, 6 p.m. to 4:30 a.m. This means a reduction of 1 hour for the day shift and 1 hour 30 minutes for the night shift.

Business Insider reported that it is unclear whether this adjustment applies only to the Cybertruck or other production lines. Tesla also produces the Model Y, a sedan-style SUV, at the Gigafactory in Austin, Texas. However, some workers at Tesla’s other factories in Nevada and California are still expected to continue working in two 12-hour shifts.

Tesla’s decision to shorten the Cybertruck production line is a response to a slowdown in electric vehicle demand. Tesla recently announced that its vehicle deliveries for the first quarter were about 386,800, falling short of market expectations by about 90,000 units. This resulted in the most significant quarterly decrease in vehicle deliveries since 2020.

Amid this, Electrek, an electric vehicle specialist media outlet, reported rumors of massive layoffs among some Tesla employees, citing tips from Tesla workers. Some speculate that Tesla could lay off up to 20% of its workforce, meaning tens of thousands of people could lose their jobs.

These rumors started after Tesla did not conduct semi-annual evaluations for some employees in February and asked managers to identify “critical” personnel in each department. The rumors intensified as poor vehicle delivery performance and production line reductions coincided in the first quarter. Last month, there were reports that Tesla had reduced production at its largest factory, the Shanghai Gigafactory.

Some Tesla employees believe layoff measures could be announced as early as this weekend (14th).

Electrek commented, “Tesla’s success depends on its ability to attract and retain talented employees. However, as Tesla becomes stingier with compensation and the stock price falls, affecting stock options, and as Elon Musk (Tesla CEO) increasingly becomes the subject of criticism, the situation seems to be getting tougher.”

Meanwhile, Tesla is scheduled to announce its first-quarter results after the close of the New York Stock Exchange on the 23rd.

Daniel Kim
content@viewusglobal.com

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