Tesla Layoff Concerns as Employees Fear Possible 20% Cuts

tesla layoff
Photo Credits: Mint


Tesla Inc. employees are becoming increasingly uneasy as reports from Business Insider and Electrek indicate that the company may be planning Tesla layoffs affecting a significant portion of its workforce due to falling sales.

According to the reports, whispers of potential layoffs are circulating around Tesla’s facilities, especially at the Texas Gigafactory, with the possibility of an announcement as soon as this week.

Tesla Layoff

Electrek‘s report indicated layoffs could reach up to 20%, while Business Insider revealed that they had already trimmed production shifts for the Cybertruck.


These reports come as the world’s leading EV company experiences a significant drop in first quarter deliveries, amid decreased demand and heightened competition, particularly in the key market of China. The slowdown in global EV demand comes as customers are cutting back on major purchases due to economic challenges. Additionally, a renewed interest in hybrid vehicles has drawn attention away from electric cars.

The EV giant reduced prices over the last year, especially in China, in an attempt to boost sales. However, these price cuts only offered limited support for demand.

In response to lower demand, the company has set more modest production targets for 2024 and reportedly scrapped plans for a more affordable EV model.

To counter these setbacks, plans to focus more on self-driving and artificial intelligence technologies. CEO Elon Musk recently mentioned plans to unveil the company’s first robotaxi in August.

Musk attributes the decline in sales to rising interest rates and a weakened global economy. What could these potential changes mean for the future of the EV industry?