Tesla job cuts: Tesla Inc. is preparing to lay off 693 employees at its Sparks, Nevada, location, according to an April 27 government filing. This workforce reduction initiative represents more than 10% of the company's total workforce worldwide and is in response to lower sales and declining sales. According to Reuters, competition within the electric vehicle market is intensifying.
Earlier this week, the company filed a notice with the Nevada Department of Employment, Training and Rehabilitation in accordance with U.S. labor law, requiring businesses with 100 or more employees to provide 60 days' notice of major layoffs or facility closures. Ta. Added report.
Also read | Tesla price cuts: Elon Musk's automaker cuts prices in China and U.S. as inventory mounts due to weak sales
The announcement comes after Tesla revealed large-scale layoffs of up to 6,020 employees in Texas and California. This is part of a larger cost-cutting program as electric vehicle manufacturers seek to adapt to changing dynamics in the market. As of late 2023, this same Tesla company had over 140,000 employees worldwide. According to the report, current layoffs represent a large proportion of the workforce.
tesla price cut
In response to falling sales and rising inventories, Tesla has announced that it will reduce the prices of its electric vehicles in China and the United States starting April 21. The strategic realignment focuses on the automaker's two most important markets and comes after a disappointing first quarter, Bloomberg reported. report.
Also read | U.S. investigates Tesla's 2 million vehicle recall due to Autopilot issue, expresses concerns
The price cuts come as Tesla grapples with increasing challenges from fierce competition in its electric vehicle business. Ideally, the company hopes the move will boost sales and reduce some of the inventory levels that have built up as the market recognizes demand at a slower pace than expected.
Tesla has lowered the starting price of the Model Y in the United States to $42,990, the lowest entry price ever for a sport utility vehicle. According to a report from Bloomberg, the Austin-based automaker also cut the price of upgraded versions of the Model Y and Model X by $2,000, setting a new record low.
The price cap marks a tumultuous week for Tesla, which began with CEO Elon Musk's announcement of more than 10% layoffs worldwide, including more than 140,000 employees. Two senior executives also left the company in the same week.
Making the situation even worse for Tesla, the company has now shut down approximately 3,900 Cybertruck pickups, alleging a problem with the accelerator pedal that could dislodge and inadvertently speed up, causing crashes. announced a recall.
On the corporate governance front, Tesla said it would resubmit Musk's $56 billion compensation proposal to shareholders to allow for a second vote. Earlier this year, it was declared invalid by a Delaware court. This series of events highlights a period of major change for electric vehicle manufacturers.
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