Former Tesla director Steve Westley joins Barney & Company. We analyze automakers’ first quarter delivery reports and their potential impact on the stock market.
Tesla confirms it will lay off more than 10% of its global workforce following weak first-quarter deliveries and increased competition in the electric vehicle (EV) market, according to a filing with the Securities and Exchange Commission. did.
“Over the years, we have grown rapidly with multiple factories around the world. This rapid growth has led to duplication of roles and duties in certain areas. “We believe this move is critical to Tesla’s next phase of growth as we develop the most innovative technologies in automotive, energy, and artificial intelligence. “Preparation,” the application states in detail.
This comes as CEO Elon said the automaker is looking to cut costs and improve productivity after years of rapid growth, which has resulted in duplication of some roles and functions in certain areas within the company. The tech publication said the move came after Musk’s internal emails were leaked. Electrek reported on monday.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| TSLA | Tesla Inc. | 157.11 | -4.37 | -2.71% |
The world’s most valuable automaker employs approximately 140,473 people worldwide. Reuters reported. He cited Tesla’s latest annual report. The reported layoffs will affect approximately 15,000 employees.
Tesla did not immediately respond to FOX Business Digital’s request for comment.
Tesla stock falls due to massive delivery shortfall
Tesla CEO Elon Musk reportedly sent an internal email announcing the reduction in employees. (Reuters/Gonzalo Fuentes/Reuters Photo)
The layoffs come as Tesla instructs management to identify key team members, suspend some stock compensation, cancel annual reviews for some employees, and reduce production at Gigafactory Shanghai. This was done after Electrek reported that.
Earlier this month, it was reported that Tesla’s quarterly shipments fell for the first time in nearly four years, falling below Wall Street analysts’ expectations. Tesla said at the time that it delivered about 387,000 vehicles in the first quarter, which was well below expectations of about 443,000 and an 8.5% decrease compared to the first quarter of last year.
Tesla’s reported 10% global workforce reduction will affect approximately 15,000 employees. (The Smith Collection/Gado/Getty Images/Getty Images)
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The company also faces increasing price competition in China, a key market for EV makers, as low-cost competitors such as BYD are forced to cut prices and cut profit margins.
Tesla said it delivered 386,810 vehicles globally from January to March, 8.5% lower than the 423,000 delivered in the same period last year. (Photo by Joe Radle/Getty Images/Getty Images)
Reuters also reported earlier this month that Tesla had abandoned its long-touted plans to produce an affordable starter car called the Model 2 that was expected to start at $25,000.
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At the time, Musk accused Reuters of “lying,” but the news organization responded that it found no specific inaccuracies in its reporting.
Tesla stock has fallen more than 30% this year.
