Report: Tesla to Cut 10% of Global Workforce

Tesla, the electric vehicle giant, is set to lay off more than 10 percent of its global workforce, according to a report by news site Electrek. CEO Elon Musk announced the cuts in an email to staff, citing the need to streamline operations after a period of rapid growth.

Musk expressed his reluctance to make the cuts, but emphasized that it was necessary for the company to remain lean, innovative, and prepared for future growth. The decision comes on the heels of disappointing first-quarter auto deliveries and increased competition in the EV market, leading Tesla to implement price cuts on its vehicles.

Analysts at Wedbush described the move as a “large cost-cutting initiative” for a company caught between growth phases. They noted that Tesla has faced a series of challenges in recent months, including lower-than-expected deliveries and overall pressure on the business.

While the news may have spooked investors, White House Press Secretary Karine Jean-Pierre highlighted the surge in EV sales and affordability, attributing it to President Joe Biden’s efforts to boost manufacturing and lower costs. Tesla, known for its innovative vehicles like the Cybertruck, has been working to ramp up production and reach profitability.

Despite the challenges, Tesla remains a key player in the EV market, with its shares closing 5.6 percent lower following the announcement. The company’s decision to cut jobs reflects a broader trend in the industry as companies navigate changing market dynamics and strive for long-term sustainability.