Tesla Announces Layoffs After Disappointing Sales
Elon Musk's Tesla, the well-known electric vehicle, robotics, and clean energy company, is planning to lay off approximately 10% of its workforce following a significant drop in sales during the first quarter of 2024.
This news comes after reports of "dismal" sales figures, according to multiple media outlets.
Detailing the upcoming layoffs from the company, Elon Musk shared plans to layoff over 14,000 of Tesla’s 140,473 employees last year and shared that the company is heading towards its growth and he’s doing it for making the company stable by saying: “It is extremely important to look at every aspect of the company for cost reductions and increasing productivity,”.
As it looks like the latest layoffs at Telsa are intended to cut costs for the company this is happening (maybe) because Tesla experienced its first quarterly sales decline in four years, according to the Press Telegram.
Out of these 14,000 employees of Tesla, there are many key people saying goodbye to the company including Andrew Baglino “Senior Vice President of Powertrain and Energy Engineering” and Rohan Patel “Senior Global Director of Public Policy and Business Development” as they went on X to announce their departure from Tesla.
Andrew Baglino is one of the oldest Tesla employees who gave the company 18 years of his life and now leaving it for all the good reasons (only he knows).
Even the CEO of Tesla Elon Musk replied to Baglino’s X post saying “Few have contributed as much as,” thanking him for his contributions to the company.
However, to your notes, Tesla is currently experiencing a downfall in its shares in the stock market. The company experienced a 4.75% drop in the shares just hours after announcing the planned layoffs.
- It's also important to note that this news follows a period of significant growth for Tesla.
Tesla has been a leader in the electric vehicle market and has seen its stock price soar in recent years faster than any other company we can witness.
However, the recent sales slump suggests that Tesla is currently facing some challenges with selling its EVs as Chinese EV makers are already beating the Tesla sales, and the layoffs are a sign of the company's attempt to navigate those challenges by cutting costs and as well as focusing on robotics and more upcoming projects.
