A Tesla supercharger at a charging station in Santa Clarita, California is shown in an image. Tesla shares were down over 1% in premarket trade Monday due to reports that the automaker will lay off more than 10% of its global workforce. This decision was announced in an internal memo by Tesla CEO Elon Musk, who emphasized the need for cost reductions and increased productivity as the company prepares for its next phase of growth. The layoffs are part of an effort to streamline the organization, and CNBC has not been able to independently verify the memo. Tesla had 140,473 employees as of December 2023.
Tesla shares have faced challenges in recent months, declining by 31% year-to-date amid decreased demand for electric vehicles and increased competition from Chinese automakers. The company reported its first annual decline in vehicle deliveries since 2020 earlier this month, with first-quarter deliveries falling by 8.5% compared to the previous year. In response to these challenges, Tesla has also reduced the subscription price of its Full Self-Driving package for U.S. customers. The situation is evolving, and updates will be provided as more information becomes available.
Tesla shares were down over 1% in premarket trade on reports that the company will be laying off more than 10% of its global workforce. CEO Elon Musk cited the need for cost reductions and increased productivity as reasons for the layoffs. This decision comes as Tesla has seen a decline in vehicle deliveries and faces competition from Chinese automakers. In response to these challenges, the company has also reduced the subscription price of its Full Self-Driving package for U.S. customers. These developments highlight the difficulties faced by Tesla as it navigates a changing market for electric vehicles.
Source link
