Report: Tesla Set for Layoffs

Things are getting a little bumpy at Tesla. The automaker’s first-quarter delivery numbers raised eyebrows, undercutting even the most critical expectations by a notable margin. Now, rumors are swirling about Tesla’s employee base, with some telling Electrek that the automaker plans to cut as much as 10 percent of its workforce in what would amount to thousands of layoffs.

Tesla had already riled workers with slow performance reviews, and many didn’t appreciate the automaker’s decision to raise prices earlier this year. It also appears to have nixed plans for an affordable entry-level EV in favor of a broad robotaxi initiative, which hasn’t sat well with many inside the company and out.

While Tesla hasn’t been shy about layoffs in the past, they were generally due to overhiring and shedding workers who were not up to the cut. This round comes at a turbulent time for the automaker, which could indicate a disease at the top levels of the company, with slow sales and other factors.

The situation isn’t much better with Tesla’s existing vehicles. People are reporting significant problems with brand-new deliveries, such as pedals falling off the Cybertruck (this could become a bigger story over time), and the company recently had a massive number of excess vehicles in its inventory.

Of course, EV growing pains aren’t unique to Tesla. The whole industry is grappling with sliding demand and high prices, as many have backtracked to develop new hybrids and plug-in hybrids to fill the gap. That said, Tesla doesn’t have that option, making things uniquely precarious for the once rapidly-growing American automaker.

[Image: Tesla]

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