Tesla trims over 10% of global workforce amid lower sales

Tesla Cybertruck in Beijing, China / Photo credit: Tesla

Tesla has laid off over 10% of its global workforce amid falling sales and growing competition in the electric vehicle industry.

Elon Musk, co-founder and CEO of Tesla, said in a statement that the rapid global growth of the company has led to “duplication of roles and job functions in certain areas.”

Rohan Patel, vice president for public policy and business development, and Drew Baglino, senior vice president for powertrain and energy engineering, have also left the company. Baglino had worked with Tesla since 2006, while Patel joined the firm in 2016.

In the first quarter of 2024, Tesla’s annual sales declined for the first time since 2020, the first year of the Covid-19 pandemic. The company was reported to have produced 433,000 vehicles, but only delivered 387,000 in the quarter, as reported by CNN. This figure marks a decline from the 484,507 cars delivered in the last three months of 2023.

“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 added in his statement.

Tesla’s shares fell 5.6% to close at US$161.48 on Monday. Shares of other EV companies like Rivian Automotive, Lucid Group, and VinFast Auto also dropped between 2.4% and 9.4%.

Despite this, Tesla is keen on expanding its global presence, notably in Asian markets. According to data from Statista, Asia Pacific in particular has been logging higher growth in EV sales compared to Western regions.

In the region, Tesla has offices in China, Hong Kong, Japan, South Korea, and Taiwan.

Earlier this month, it was reported that Musk is exploring potential locations for a multibillion-dollar EV plant in India. The development came after the country lowered import tariffs on EVs.

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