Auto Industry Analyst Sonduren Fanarredha discusses the factors contributing to the drop in Tesla sales, and whether they're part of a larger trend in the electric vehicle market. – Apr 5, 2024will lay off more than 10 per cent of its global workforce, an internal memo seen by Reuters on Monday shows, as it grapples with falling sales and an intensifying price war for electric vehicles .
“As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity,” Musk said in the memo. Tesla could be years away from releasing a fully autonomous vehicle with regulatory approval, according to experts in self-driving cars and regulation.Monday’s letter to staff marks the second time Musk has said he would reduce headcount by 10%. In 2022, Reuters reported that Musk told executives he had a “super bad feeling” about the economy and needed to cut jobs at the automaker. Tesla never outlined how many jobs it cut in 2022, but its overall employee count rose.
Analysts from Gartner and Hargreaves Lansdown said the cuts were a sign of cost pressures as the carmaker invests in new models and artificial intelligence.Tesla reported this month that its global vehicle deliveries in the first quarter fell for the first time in nearly four years, as price cuts failed to stir demand.
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