Electric car manufacturer Tesla is planning to lay off about 14,000 employees, or a tenth of its workforce, following disappointing first-quarter sales. CEO Elon Musk outlined the layoffs in a memo, citing the need for cost reductions and increased productivity as the company prepares for future growth. Two key executives, including Andrew Baglino and Rohan Patel, have announced their departures from the company on the social media platform X.
Baglino, who has been with Tesla for 18 years, expressed gratitude for his time with the company and his contributions to the mission of accelerating the transition to sustainable energy. Musk thanked Baglino for his contributions, acknowledging his significant impact on the company.
Following news of the layoffs and executive departures, Tesla’s shares fell 4.8% on Monday afternoon. The company has seen a decline in sales this year due to increased competition, slowing electric vehicle sales growth, and unsuccessful price cuts aimed at attracting buyers. Tesla delivered 386,810 vehicles in the first quarter, a decrease from the previous year.
In response to these challenges, Tesla has announced plans to reveal an autonomous robotaxi at an event in August. The company has been cutting prices on some models to compete with other electric vehicle manufacturers, causing used electric vehicle values to drop and impacting profit margins. Despite these setbacks, Tesla remains focused on innovation and growth in the electric vehicle market.
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