Massive layoffs at Tesla as company loses customers over Musk’s ‘political tirades’

Luc Williams

Announcement about layoffs at Tesla appeared in April when Elon Musk sent an email to the entire company informing employees of the need to lay off more than 10 percent of its staff. Bloomberg reported at the time that Musk was seeking to reduce staff by 20 percent, and that number could have been increased by him. In a phone interview about the company’s first-quarter results in late April, he said that Tesla efficiency After the “long boom” that began in 2019, it fell by 25–30 percent.

“We’ve made some adjustments along the way,” Musk said in the call. “But it’s time to reorganize the company for the next phase of growth.”

In June, Tesla did not immediately respond to a request for comment.

The End of Tesla’s Battery Division

In at least one case, Musk’s job cuts went too far. Tesla has solved its problem Supercharger Team , which consisted of hundreds of employees, including its leader, Rebecca Tinucci. The company later rehired some of those people, according to posts on LinkedIn.

Musk’s problematic “performances”

The broader cuts come amid a decline in Tesla sales, which the company blames on its aging electric vehicle lineup and growing competition in China. There is also an overlap with this deterioration of the brand image, which a recent opinion poll attributes in part to Musk’s “antics” and “political tirades.” In the first quarter, Tesla recorded 9 percent growth. decline in annual revenues, which is the biggest cut since 2012.

Problems of the automotive industry

Growth throughout the automotive industry sales of electric vehicles slowed down sharply after two years of rapid development. The correction was particularly severe in the case of Tesla, which Model Y was the best-selling car in the world in 2023.

Mass layoffs at Tesla

A Tesla employee who asked not to be identified told CNBC that some factory workers fear there could be a shutdown in July, depending on second-quarter results. further layoffs. Tesla is expected to release its second-quarter production and delivery report in the first week of July. Musk promised investors that the company will soon publish a new “Master Plan”, which will be its fourth, and Tesla will reveal its “dedicated robotaxi” project on August 8.


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