ELON MUSK'S TESLA TO SLASH 693 JOBS GLOBALLY AMID SALES DOWNTURN AND INTENSIFIED COMPETITION

Tesla Layoffs: Elon Musk-owned EV car manufacturer Tesla plans to lay off 693 employees at its Nevada facility, constituting over 10 per cent of its global workforce, according to a government filing on April 27. This move comes amidst dwindling sales and intensified competition in the electric vehicle (EV) sector, news agency Reuters reported.

The company filed a notice with the Nevada Department of Employment, Training, and Rehabilitation as mandated by US labour laws, requiring advanced notice for significant layoffs or facility closures. This action reflects Tesla's strategic response to evolving market conditions and its commitment to compliance.

Tesla's downsizing initiative follows significant layoffs earlier in the week, affecting up to 6,020 employees in Texas and California. These measures are part of a broader cost-cutting program aimed at navigating the shifting landscape of the EV market. With over 140,000 employees globally as of late 2023, the current layoffs substantially reduce Tesla's workforce.

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Price Reductions in Key Markets

In response to declining sales and escalating inventories, Tesla has implemented price cuts for its electric vehicles in China and the US, effective April 21. These strategic adjustments target the automaker's primary markets and aim to stimulate demand amidst challenging market conditions.

Impact on Sales and Inventory Management

The price reductions aim to address growing challenges faced by Tesla, including fierce competition in the EV industry and sluggish demand. By lowering prices, the company seeks to drive sales and alleviate mounting inventory levels, thereby restoring market equilibrium.

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Model Y Price Adjustment

Tesla Inc. has notably reduced the starting price of its Model Y SUV to USD 42,990 in the U.S., marking the lowest entry price for the vehicle to date. Additionally, the company has slashed prices for upgraded versions of the Model Y and Model X, setting new record lows in response to market dynamics.

The price adjustments coincide with a series of significant developments for Tesla, including CEO Elon Musk's announcement of a global workforce reduction exceeding 10 per cent and the departure of two senior executives. Furthermore, Tesla faces challenges on the product front, as it initiates a recall of approximately 3,900 Cybertruck pickups due to accelerator pedal issues.

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Tesla also disclosed plans to resubmit a USD 56 billion compensation package for Musk to shareholders following its voiding by a Delaware court earlier in the year. These events underscore a period of significant upheaval and transformation for the EV manufacturer on multiple fronts.

2024-04-27T09:53:13Z dg43tfdfdgfd