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AUSTIN, TX – Faced with declining sales and increased competition, electric vehicle maker Tesla told employees on Monday that it will lay off more than 10 percent of its workforce, roughly 14,000 people, to trim costs. Two top executives also resigned.
In an email to employees, obtained and reported by “The New York Times” and other news outlets, Tesla chief executive Elon Musk explained the decision.
“As we prepare the company for the next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity,” Musk wrote. “There is nothing I hate more but it must be done.”
Musk did not reveal exactly where the cuts will be made. Tesla has motor vehicle manufacturing plants in Fremont, CA; Austin, TX; Shanghai and near Berlin in Germany.
Earlier this month, Tesla reported first quarter 2024 deliveries of 387,000 cars, an 8.5 percent drop from 2023. Competitors such as BMW, Kia and Hyundai are experiencing growth in EV sales. Hyuandai plans to begin building EVs in Georgia in October, while Honda plans to begin making electric vehicles in Marysville, OH next year.
Tesla also has plants in Buffalo, NY and Revo, NV that produce charging equipment and batteries, respectively.
The executives who resigned were senior vice president Drew Baglino and Rohan Patel, who was head of policy and business development.
(Photos courtesy of Tesla.)
