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Tesla's Internal Shake-Up
Tesla is planning to lay off over 14,000 employees—more than 10% of its global workforce—in its first large-scale layoffs in over a year, according to an internal memo this week. The company's electric vehicle sales have begun to stagnate amid a decline in demand and increased competition from Chinese carmakers. Tesla's shares fell over 5% on the news.
CEO Elon Musk said the layoffs are part of cost-cutting measures as the company prepares for its next phase of growth. Also yesterday, two top executives at Tesla announced their departure: engineering executive Drew Baglino and policy and outreach executive Rohan Patel.
The shake-up comes after Tesla earlier this month posted its first year-over-year decline in quarterly sales since 2020. The report came after China’s BYD briefly overtook Tesla as the world's top seller of battery electric vehicles last year. In January, Musk said Tesla would soon release a cheaper, $25K model rumored to compete with BYD. That plan has now reportedly been tabled, with Musk prioritizing the debut of a robotaxi fleet in August
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