Tesla is cutting over 10% of its global workforce due to declining sales and increasing competition in the electric vehicle (EV) market, Reuters reports.
Tesla CEO Elon Musk attributes the layoffs to periodic restructuring for future growth. The layoffs come amid departures of key executives, including battery development chief Drew Baglino and vice president for public policy Rohan Patel, raising concerns about leadership stability. Tesla’s decision to cancel its affordable Model 2 car has raised concerns about Tesla’s long-term strategy.
Additionally, Tesla’s global vehicle deliveries have dipped for the first time in nearly four years, indicating challenges in stimulating demand amidst increasing competition. Despite plans to expand into new markets like India, Tesla’s profitability has declined, with its gross profit margin hitting a four-year low.
