Just now, Tesla stated that they are going to be letting go of thousands of workers, which is about 10% of their entire staff. Elon Musk seems to be responding to prices going up and down as well as less desire.
As the company has grown so quickly, Elon Musk said that some jobs have been done more than once, so he made “the difficult decision” to cut down on the work force. “I hate it more than anything else, but I have to do it.” “This will help us be lean, creative, and eager for the next growth phase,” he wrote.
Elon Musk said in the first quarter of this year that Tesla had missed their sales and income goals, which set them back. The company Tesla said that the production problems were caused by attacks on ships in the Red Sea and a drop in the demand for electric cars around the world.
Car analyst Matthias Schmidt said that these cuts show “the slowing pace of growth of an electric car market, which it seems Tesla isn’t immune from.” Tesla said that BYD, a Chinese business that makes electric cars, also had a slow quarter, making it a slow quarter “for everyone.”
As he wrote on X, Musk talked about the future: “About every five years, we need to reorganize and streamline the company for the next phase of growth.”
People didn’t expect as much demand for electric cars, so this kind of layoff will happen a lot in the industry. BP is another company that has taken the step of letting people go. They did this in their electric car charging business.
What does this mean for the future? We don’t know if demand for EVs will rise again, but as more companies follow suit, these layoffs may become more regular.
