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Tesla. Layoffs. Elon Musk's letter

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In a note to Tesla employees, Elon Musk wrote that there is nothing he hates more, “but it has to be done.” In this way, he announced the dismissal of over 10 percent of the automotive company's employees.

According to the latest annual report, Tesla, the leading manufacturer of electric cars in the world, employed over 140,000 people worldwide at the end of December 2023. employees.

“We have conducted a thorough review of the organization and have made the difficult decision to reduce our workforce by more than 10 percent globally,” Musk wrote in an email to Tesla employees. “There is nothing I hate more, but it has to be done. It will keep us resilient, innovative and hungry for the next phase of growth,” he said.

Read also: There will be an investigation into Elon Musk

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One Tesla employee who was fired told the BBC that his email access was immediately cut off, as was the case with all other employees who lost their jobs.

As the BBC notes, Tesla is scheduled to release its quarterly results later this month, but has already reported a drop in vehicle deliveries in the first quarter, the first in almost four years. These data were below market expectations. Some analysts called the results “tumultuous.”

Last month, Tesla reduced production at its “gigafactory” in Shanghai, and last week the company told employees who work on the Cybertruck that production shifts at the Austin factory would be shortened.

Tesla, Tesla distribution center ice_blue / Shutterstock.com

Abandoned plans and the breath of competition

Tesla has begun to feel the effects of slowing demand for electric vehicles (EVs). The company has abandoned plans that were one of Musk's long-term goals of creating affordable electric vehicles for the masses.

As the BBC states, the electric vehicle maker has been slow to refresh its aging models as high interest rates have dampened consumer appetite for more expensive products.

There is also constant pressure from China. Many producers of electric cars from the Middle Kingdom have even started to flood the market with inexpensive models, and not only in their homeland.

Read also: “No dumping and no overproduction.” The German Chancellor sets conditions for the Chinese automotive industry

Main photo source: ice_blue / Shutterstock.com

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