London, England – Tesla, the world’s largest electric vehicle manufacturer, is set to lay off over 10% of its global workforce, according to a memo sent by CEO Elon Musk. The billionaire owner expressed his reluctance but emphasized the necessity of the decision for the company’s future success.
The move comes as Tesla faces challenges in the market, with slowing demand for electric vehicles impacting its production and sales. Analysts have attributed the job cuts to cost pressures as the company invests in new models and artificial intelligence technology.
Despite the layoffs, Tesla’s executives have also announced their departures, signaling potential headwinds for the company’s growth phase. This includes key figures like Andrew “Drew” Baglino and Rohan Patel, who have played significant roles in driving initiatives at the firm.
Investors and analysts have expressed concern over Tesla’s recent performance, with a decline in vehicle deliveries in the first quarter and below-market expectations. The company is expected to report its quarterly earnings soon, with a focus on addressing challenges in production and demand for its electric vehicles.
The impact of high interest rates on consumer spending, as well as delays in refreshing aging models, has added further pressure on Tesla’s operations. Despite these challenges, Elon Musk remains committed to his goal of offering affordable electric vehicles to a wider audience.
As Tesla navigates these obstacles, its shares have seen fluctuations in premarket trading, reflecting investor uncertainty about the company’s future prospects in the rapidly evolving electric vehicle market. The announcement of job cuts and executive departures marks a significant moment for Tesla as it seeks to realign its resources and strategy for sustainable growth.