Tesla’s first quarter revenue drops by 9% following extensive layoffs in California and Texas

Tesla CEO Elon Musk announced plans to accelerate the launch of more affordable electric vehicle (EV) models following disappointing financial results for the automaker. Despite reporting a 9% year-over-year decrease in revenue for the first quarter of 2024, Musk remains optimistic about the future of EVs.

During an earnings call, Musk highlighted the challenges facing the EV market, with many competitors shifting focus to plug-in hybrids. However, Tesla remains committed to electric vehicles and believes they will ultimately dominate the market.

In response to the underwhelming financial performance, Tesla announced a 10% reduction in its global workforce, with layoffs affecting thousands of employees in California and Texas. The company cited declining sales and increased competition in the EV sector as reasons for the workforce reduction.

One of Tesla’s highly anticipated projects, the all-electric Class 8 Semi truck, has faced delays due to production issues and a recall for parking brake problems. Despite these setbacks, Tesla plans to begin mass production of the Semi in late 2025, with deliveries to external customers expected to start in 2026.

Additionally, Musk revealed plans for a new Gigafactory in Mexico, located near the Texas border. The project is currently in the infrastructure and factory design phase, with production expected to ramp up once global economic conditions stabilize.

Overall, Tesla’s latest financial results and strategic decisions reflect the company’s ongoing commitment to advancing the adoption of electric vehicles and solidifying its position in the rapidly evolving automotive industry.