Tesla Plans Job Cuts, Top Executives Exit Amid Slumping Sales

4

Tesla, the Austin-based electric car titan helmed by CEO Elon Musk, is bracing for significant operational changes following a challenging first quarter. The company plans to thin its ranks by roughly 10% in an earnest bid to slash operating expenses and boost overall productivity, according to information shared across various media outlets.

Elon Musk clarified these looming changes in an internal memo extended to Tesla’s staff. This unavoidable culling of personnel could potentially impact around 14,000 members of the total 140,473 strong workforce, as of the end of the preceding year.

Follow us on Google News! ✔️


In his memo, Musk iterated the ticking imperative for Tesla to examine each operational facet critically for potential cost-curtailing and productivity-enhancing measures as it gears up for its subsequent growth chapter. This unexpected piece of news driving a ripple of disappointment through the electric car industry was initially broken by Electrek, an online media platform dedicated to electric vehicle trends.

In a tragic coincidence on the same day, two critical cogs in the Tesla machinery revealed their imminent departures on X, a popular social media platform. Andrew Baglino, the high-ranking Senior Vice President of Powertrain and Energy Engineering, confessed his resolution to conclude his 18-year tenure at Tesla.

Rohan Patel, Senior Global Director of Public Policy and Business Development, echoed Baglino’s sentiment with his own resignation announcement on X after an eight-year association with Tesla.

Baglino, a veteran who has worn multiple engineering hats at Tesla, including Chief Technology Officer, found the decision to part ways emotionally challenging. “I feel a deep sense of gratification to have been a part of a team committed to accelerating the transition to sustainable energy,” he broadcasted in his split announcement. Baglino intends to prioritize family time with his young children in his immediate future, while subtly hinting about his unease with extended idleness.

Musk, in his characteristically cryptic style, expressed gratitude towards Baglino’s contribution. “Few have contributed as much as you,” responded Musk.

It was a black Monday for Tesla, with its shares plummeting 4.8% in the wake of the disheartening news about the layoffs and executive exits. The once-promising electric vehicle manufacturer has witnessed about a third of its share value erased in the current year alone, compounded by slackening electric vehicle sales. Tesla’s revenue saw a steep downturn last quarter owning to mounting global competition, decelerating sales growth, and low customer response to price cuts.

Tesla reportedly handed over 386,810 vehicles to their new owners in the first quarter, marking a nearly 9% nosedive from the 423,000 units sold in the comparable three-month period last year. The company had even slashed prices by up to $20,000 on particular models in futile attempts to counter the wave of competitive pressure and waning demand.

In the face of these multiple challenges, the pioneering electric vehicle maker is poised to unveil an autonomous robotaxi at a grand event in August, a glimmer of hope in a somewhat bleak landscape.