Tesla plans to cut about 14,000 employees, or 10% of its total workforce, amid a decline in electric vehicle sales and increased competition in the electric car market.
Large-scale layoffs
Tough decision
Leading electric vehicle maker Tesla is preparing to make massive layoffs, laying off at least 14,000 workers - about a tenth of its global workforce. This forced measure is due to the need to increase the company's efficiency and innovation ahead of a new growth cycle. This difficult decision was made by Tesla CEO Elon Musk himself, who admitted that layoffs are what he hates most, but they are simply inevitable.
Falling sales
In the first quarter of 2024, Tesla faced a contraction for the first time in four years sales of their electric vehicles. Although the company has overtaken Chinese rival BYD and regained leadership in the global electric car market, its customer deliveries amounted to 386,810 units, down 8.5% from the same period last year. This negative trend was the result of a price war and increased competition, especially in China, Tesla's largest market.
New plans
In an effort to adapt to changing market conditions, Tesla has revised some of its plans. The company refused to release the $25,000 Model 2 budget model announced by Musk in 2020. Instead, Tesla will focus on developing a new robotaxi, which is scheduled to debut on August 8th. It is expected that this will be a self-driving car without a steering wheel or pedals, and a compact version with conventional controls may also be presented.
Glossary
- Tesla is a leading American manufacturer of electric vehicles, founded by Elon Musk.
- Elon Musk is a renowned entrepreneur, engineer and visionary, co-founder and CEO of Tesla.
- BYD is a Chinese company, one of the world's largest manufacturers of electric vehicles and batteries.
- Model 2 is Tesla's planned budget electric car model costing $25,000.
- Robotaxi is an unmanned autonomous taxi without a steering wheel or pedals, being developed by Tesla.
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Discussion of the topic – Tesla will lay off 10% of employees: large-scale reduction of 14 thousand jobs
Electric vehicle market leader Tesla is preparing for massive layoffs. According to sources, the company plans to cut about 14,000 employees, which is 10% of its total workforce.
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Zoya
Looks like big changes are coming at Tesla 😕 Cutting 10% of employees is a major move that will definitely impact the company. I wonder how this will affect their innovation and production? 🤔
Франсуа
It seems to me that Tesla is simply reallocating resources. They abandoned the idea of an affordable Model 2 electric car to focus on developing robotaxis 🚕 This could be a smart move, because the robotaxi market has huge potential. 💰
Давид
I don't think abandoning the Model 2 is a good idea. Affordable electric vehicles are necessary for the mass transition to environmentally friendly transport. 🌱 Robotaxi is great, but why not do both at the same time?
Ганс
I heard that Tesla may introduce two models on August 8th: a robotaxi without a steering wheel or pedals, and a compact electric car. 🚗 If this is true, then they will kill two birds with one stone!
Гжегож
Musk says the cuts are needed to improve efficiency and innovation. 🧠 But isn't it too risky to lose so many talented employees? After all, they are the ones who create these innovations!
Оскар
I wouldn't write Tesla off so easily. 💪 They have proven more than once that they can get out of difficult situations with honor. Perhaps these changes are just temporary turbulence on the path to new achievements.
Вальтер
Hmm, this news seems rather sad to me. 😕 Staff cuts, abandonment of affordable electric cars... All these “changes” do not look positive for Tesla. I hope they know what they're doing.
Григорий
What nonsense? 🙄 Companies come and go, but people continue to live their lives. Why bother with all these fancy things like electric cars and robotaxis? In my day we rode good old horses and no one complained!
Анна
Mr. Gregory, times are changing, and progress cannot be stopped. 🚀 Electric cars and robotaxis are the future of transport, more environmentally friendly and convenient. Companies like Tesla have to keep up with the times to remain competitive.
Алессандро
I think the cuts at Tesla are a forced measure to optimize costs. 💰 The price war in the electric vehicle market has escalated, and the company needs to improve efficiency to remain profitable. This is a difficult but necessary step.
Ивона
It seems to me that Tesla is focusing too much on robotaxis and high-tech projects. 🤖 How about focusing on improving the quality and affordability of your existing EV models? Not all buyers want a robotaxi.
Карлос
I'm sure Tesla knows what it's doing. 🧠 Elon Musk is a genius in the field of innovation, and his company is always one step ahead of the rest. Robotaxis are the future of transportation and they will be the first to enter this market.
Джулия
You know, I'm worried about the layoffs. 😔 Losing a job is always stressful and a blow to financial well-being. I hope Tesla will take care of their former colleagues and provide them with support during their difficult time.
Петр
Honestly, I don't understand all the hype about Tesla. 🤷♂️ Yes, they make electric cars, but is that something new? Other automakers are also not lagging behind in this race. What makes them unique?
Мария
In my opinion, the main advantage of Tesla is their desire to innovate and their willingness to take risks. 🚀 They are not afraid to experiment and take unconventional paths, which often brings revolutionary results. This is inspiring!