From Nasdaq: 2024-04-15 08:37:02

Tesla is planning to cut more than 10% of its global workforce due to slower EV demand. The job cuts are expected to affect around 14,000 employees, with Tesla aiming to streamline operations and reduce costs. This news has caused Tesla’s shares to drop by 1.3% in pre-market trading, trading at $168.90 on the Nasdaq.

CEO Elon Musk stated that the planned job cuts will help Tesla become more efficient, innovative, and prepared for future growth opportunities. Despite the layoffs, Musk emphasized the importance of the remaining employees in driving the company forward with groundbreaking technologies in auto, energy, and artificial intelligence.

Tesla has faced challenges with production and deliveries in the first quarter, including issues at the Fremont factory and Gigafactory Berlin. The company also experienced a drop in EV production at its Giga Shanghai factory in China, amid tough competition and a sluggish market for new-energy vehicles in the country and globally.

In response to these challenges, Tesla announced price cuts for its Full Self-Driving subscriptions in the U.S. and made changes to its Cybertruck production shift at Gigafactory Texas. The company is also reportedly exploring a joint venture with Reliance Industries Ltd. in India to establish a manufacturing plant.



Read more at Nasdaq: Tesla Plans Above 10% Cuts In Global Workforce