Tesla (TSLA.US) notified the California Department of Employment Development this week that it will cut about 600 employees.
The Zhitong Finance App learned that as part of Tesla's (TSLA.US) large-scale restructuring, the electric vehicle manufacturer notified the California Department of Employment Development this week that it will cut about 600 employees at manufacturing plants and engineering offices in Fremont and Palo Alto.
Tesla has been cutting jobs since at least January due to weakening demand for electric vehicles and increased competition. In April of this year, Tesla CEO Elon Musk said in a memorandum that the company would lay off more than 10% of its global workforce. By the end of 2023, Tesla had a total of 140,473 employees.
So far this year, Tesla's stock price has fallen by about 30%, while the S&P 500 index has risen 11%.
Musk has been trying to persuade investors not to focus on car sales, but to support Tesla's potential to eventually launch autonomous driving software, robotic taxis, and “sentient” humanoid robots. Musk and Tesla have long promised customers that autonomous driving software will turn their existing electric vehicles into robot taxis, but the company's autonomous driving system still requires continuous human supervision.
Additionally, Tesla recently cut the US supercharging station team.
Tesla revealed plans to develop and optimize charging infrastructure in the 2023 annual document “to ensure cost efficiency and customer satisfaction.”