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Tesla: a wave of layoffs expected?

Tesla reportedly requested its managers to conduct interviews with their employees to determine which positions are crucial and which ones could be eliminated.

Following Bosch, Valeo, and Stellantis, Tesla is also contemplating the possibility of reducing jobs in the upcoming months. According to Bloomberg, Tesla executives recently made an unexpected request to assess the importance of each employee’s position.

This approach has caused concern within the company and has fueled fears of potential layoffs.

A decrease in demand expected

As reported by Bloomberg, Tesla sent a simple one-line query to its employees to evaluate the significance of their positions. This decision was made after canceling semi-annual performance reviews for some employees. As of December 31 of the previous year, Tesla had 140,473 employees worldwide, a significant workforce especially when signs of reorganization start to emerge.
This may not come as a surprise given Elon Musk’s recent warnings about an anticipated sales slowdown this year. Despite the implemented price cuts that have impacted Tesla’s profit margins, the growth outlook remains uncertain. This has raised concerns among investors regarding effective demand and the rise of Chinese competition.

The Chinese competition looms

Despite numerous price reductions by Tesla, the Chinese automotive market, the largest in the world, experienced its first monthly decline in electric vehicle sales in January, due to a decrease in demand.
Additionally, in the fourth quarter, the American manufacturer had to relinquish its leading position in the electric vehicle field to BYD. This change reflects the shifting dynamics of the market, making 2024 a pivotal year to see whether the strategy of Chinese manufacturers will pay off.

In their own market, it already seems to be the case.

Read also:
Tesla: price drop annoys customers
Tesla: price drop would lead to delivery delays
Tesla: the price of kWh in free fall!

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