Elon Musk recently announced that Tesla will be laying off more than ten percent of its workforce.
Reports show that the company has seen tremendous growth over the years, with the opening of new plants all around the world. Over-hiring has occurred in several departments as a result of this fast expansion. In a statement to staff, Musk emphasized the need to examine every part of the firm for ways to cut costs and boost efficiency as they get the business ready for its next development phase.
This initiative includes a comprehensive examination of the company, which led to the tough decision to cut worldwide staff by over 10%. Musk said he hated to do it, but it had to be done. It will allow Tesla to remain agile, creative, and eager for future growth. To hasten the shift to renewable energy sources, Tesla has been at the forefront of developing, producing, and marketing various electric cars, energy storage devices, and other technologies.
As of 2023, Tesla employed nearly 150,000 people.
Financial outlets show that Tesla stock has taken a beating recently, with a 31% year-to-date decline. Although the sales growth rate of electric vehicles, particularly Tesla, has slowed, the trend is still positive globally. There is greater competition than ever before for the firm.
As 2023 came to a close, BYD of China briefly surpassed Tesla as the leading electric vehicle manufacturer globally. In March, Xiaomi, a Chinese smartphone manufacturer, said it would offer its first electric vehicle far cheaper than Tesla’s Model 3.
Despite offering discounts and incentives to customers throughout the quarter, Tesla’s production fell 1.7% year-over-year and 12.5% sequentially. First-quarter deliveries fell 8.5% on the year to 386,810 vehicles, marking the first annual decline for the company since 2020 due to the pandemic.
