Palo Alto, April 15 (Reuters) – U.S. electric carmaker Tesla is reportedly preparing to lay off up to 20% of its workforce, according to news websites Electrek and Business Insider, citing company employees.
The layoffs are said to be in response to Tesla’s worsening sales. Global demand for electric vehicles has slowed, and customers have reduced purchases due to worsening economic conditions. The resurgence of hybrid models in popularity over the past year has also hit demand for pure electric vehicles.
Tesla has already reduced prices of its vehicles in the past year, particularly in China, to boost sales. However, this has only had a limited effect on sales. The company has set lower production targets for 2024 and is also said to have scrapped plans for a low-cost electric vehicle.
On the other hand, Tesla has unveiled plans for autonomous driving and artificial intelligence technology to offset this decline. CEO Elon Musk recently said the company will unveil its first robotaxi in August of this year.
Musk has also blamed high interest rates and a weaker global economy for the decline in sales.
Key points:
- Tesla is considering laying off up to 20% of its workforce.
- The reason is worsening sales and weak demand for electric vehicles.
- The company has already cut prices and set lower production targets.
- Tesla is focusing on autonomous driving and AI to offset the decline in sales.
Additional information:
- Tesla is struggling with worsening sales in China, one of its biggest markets.
- Workers are concerned about layoffs at the Fremont factory and Gigafactory in Texas.
- Tesla has already shortened Cybertruck production shifts.
- The company instructed managers earlier this year to identify the most important tasks.
Sources:
- Electrek:Â https://electrek.co/
- Business Insider:Â https://www.businessinsider.com/
- Reuters:Â https://www.reuters.com/
