From Investing.com: 2024-04-15 15:45:39

Tesla is laying off over 10% of its workforce due to falling sales and EV price wars, CEO Elon Musk said the reorganization is necessary for growth. Despite Musk’s positive stance, investors worry. The headcount increase from 2021 to 2023 is concerning. Tesla shares fell 5% on Monday.

The layoffs come after reports that Tesla canceled a promised $25,000 car, now focusing on self-driving robotaxis. Musk denies Reuters allegations and remains silent on the Model 2’s future. Tesla might unveil robotaxis soon, but full autonomy is years away. Shares have dropped 33% this year.

BP cut 10% of its EV charging workforce due to slow commercial fleet EV growth. Labor representatives at Tesla’s German plant were not informed about the layoffs, sparking legal concerns. Analysts attribute the layoffs to cost pressures as Tesla invests in new AI and models. Vehicle deliveries fell for the first time in four years.



Read more at Investing.com: Tesla laying off more than 10% of staff globally as sales fall By Reuters