Tesla’s Shocking Move: 10% of Employees Fired

Electrek, a technical publication, reported on the 15th (local time) that Tesla is laying off more than 10% of its employees, citing an internal memo.

According to insiders, Tesla has instructed managers to identify key team members while suspending some stock compensation and canceling some employees’ annual evaluations. It has also reduced production at the Gigafactory in Shanghai.

Tesla employs 144,473 people, and the reported reduction will affect about 15,000 workers.

Also, Tesla reported that its first-quarter vehicle deliveries fell below expectations for the first time in nearly four years. The company plans to announce its quarterly results on April 23.

Tesla’s stock fell 0.6% in pre-market trading on Monday.

Elon Musk has given up his long-standing goal of producing affordable electric cars for the masses.

Tesla is preparing for an economic slowdown in 2024 after years of rapid sales growth.

With high-interest rates reducing consumer demand for high-priced items, Tesla is slow to refresh its older models, while competitors in China, the world’s largest auto market, are launching cheaper models.