Elon Musk, CEO of Tesla and owner of X (formerly Twitter), attended the Viva Technology conference in Paris on June 16, 2023. Musk sent an internal email to Tesla employees, acknowledging that some severance packages were incorrectly low and apologizing for the mistake.
Tesla announced plans to cut over 10% of its workforce, which stood at around 140,000 employees by the end of 2023. The layoffs were described as necessary to prepare the company for future growth. Recent reports suggested that Tesla would shift its focus from producing affordable electric vehicles to developing robotaxi technology, a move confirmed by Musk.
Tesla reported an 8.5% decline in first-quarter deliveries, marking the first drop since 2020. The company is set to discuss its first-quarter results with shareholders on April 23, where more details about the restructuring and its impact on departments are expected to be revealed.
In a proxy filing, Tesla asked shareholders to approve a new CEO pay package for Musk, similar to the record compensation plan granted in 2018 but voided later by a court ruling. Tesla’s stock has declined by 37% this year, closing at $155.45 as of Wednesday.
A video discussing the challenges facing Musk and Tesla was shared in the article.
Elon Musk, the CEO of Tesla and X (formerly known as Twitter), attended the Viva Technology conference in Paris on June 16, 2023. Recently, Musk sent an internal email to Tesla employees acknowledging that some laid-off workers were given severance packages that were too low, apologizing for the mistake. Tesla announced a global workforce reduction of over 10% earlier this week, as part of preparations for the next phase of growth. The company is shifting its strategy towards robotaxi development, abandoning plans for a more affordable EV. Musk’s 2023 “master plan” for sustainable energy remains uncertain. Tesla reported an 8.5% decline in first-quarter deliveries, the first drop since 2020, due to pandemic disruptions. Musk’s CEO pay package, previously voided by a Delaware court, is up for shareholder approval. Tesla shares have fallen 37% this year, with upcoming first-quarter results likely to shed light on the impact of the restructuring. This period is seen as critical for Musk and Tesla’s future direction.
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