Elon Musk and Tesla remain in the eye of the storm. The automotive giant announced that it will lay off 10% of its workforce worldwide. A question mark has been placed over the company’s future. Among the most insistent questions is whether they will continue with the plan for an affordable electric car or increase their bet on the robotaxi.
Following the announcement, its shares plummeted.
In a leaked email, Elon Musk justified the move to prepare the company for its next phase of growth.
The significant cut comes after a vehicle delivery quarter that fell short of expectations. There were 387 thousand vehicles, which represents a reduction of 8.5% compared to the same period last year. Additionally, Tesla faces increasingly fierce competition in the electric vehicle market.
Tusk, CEO of Tesla, explained that the measure is taken to optimize costs and increase productivity after several years of very marked growth that, consequently, produced the duplication of roles in certain areas of the company.
The cut will affect about 15 thousand employees. Tesla employs 140,473 workers globally.
Additionally, Tesla has been forced to reduce its prices in China, where it competes with low-cost proposals such as BYD, which has temporarily surpassed Tesla as the world’s leading producer of electric vehicles. Other players such as the smartphone company Xiaomi have announced their entry into the field.
Additionally, Reuters reported that Tesla will no longer develop the so-called Model 2, which is cheaper, with an initial price of US$25,000.
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– 2024-04-20 15:21:26
