In the first quarter of 2024, Tesla delivered 386,810 cars, marking a 20.1% drop from the previous quarter. This decrease in vehicle deliveries has prompted CEO Elon Musk to consider reducing Tesla’s workforce by 20%. According to sources, Musk believes that the layoffs are necessary due to the company’s rapid growth and duplicate roles in certain areas.
Before the reduction, Tesla employed over 140,000 people globally. However, with declining sales and increased competition from Chinese car companies like BYD, the company has faced challenges in recent years. Despite these challenges, Musk remains committed to keeping Tesla “lean, innovative, and hungry for the next growth phase cycle.”
Critics have raised concerns about Musk’s ability to effectively manage multiple companies at the same time. In addition to Tesla, he is involved in ventures like SpaceX, The Boring Company, Neuralink, X, and xAI. However, Musk has emphasized that he is able to balance his responsibilities across all of his companies and is constantly working on new ideas and projects.
Representatives for Tesla have not yet commented on the reported layoffs and workforce reduction. It remains to be seen how these changes will impact the company’s future performance and growth. However, one thing is certain: Tesla will continue to be a major player in the automotive industry for years to come.
