Elon Musk has announced austerity measures in a letter to Tesla’s workforce, citing the challenging situation in the e-mobility market. The American car company plans to cut at least 10 percent of its jobs worldwide, affecting over 14,000 employees. This decision comes after rapid growth with multiple factories around the globe, resulting in duplication of roles and tasks in certain areas. In order to prepare the company for its next phase of growth, Musk has made the difficult decision to reduce the number of employees globally.
Tesla has remained silent about the planned dismantling so far, and Musk has not yet commented on layoffs publicly. However, many media outlets have reported on the planned job cuts based on an internal email sent by Musk to his employees. The CEO emphasized the importance of making the company lean, innovative, and hungry for future growth through these cost-cutting measures.
The economic situation for Tesla has been tense due to increasing competition in the e-mobility market and falling profit margins. Chinese electric car manufacturers have been putting pressure on Tesla with lower prices supported by government subsidies that distort market prices. This has resulted in weakening demand for electric cars especially in North America and Europe where Tesla previously held a strong position.
Despite facing challenges before, Tesla under Elon Musk’s leadership managed to overcome them and maintain resilience in times of adversity. As they navigate through current difficulties in e-mobility market, Musk’s ability to adapt and lead Tesla through tough times will be crucial for their future success as a company.
