Tesla will fire more than 10% of its staff, or at least 14,000 people. Several agencies report this with reference to an internal company document signed by Elon Musk.
To enter the next phase of growth, the company needs to reduce costs and increase efficiency, the billionaire explains, and this requires a review of the structure and elimination of duplication of functions.
"I really don't like to do this, but it needs to be done," Musk said.
The news of the layoffs sent the company's stock price down by 1.2%, bringing the year-to-date drop to more than 30%. The news comes at a difficult time for Tesla.
After the failed physical production report, the market is waiting for the first quarter financial report on 23 April.
As reported, Tesla has abandoned its plans to produce a low-cost electric car, focusing on self-driving taxis.
Investors are no longer perceiving Tesla as a growth company and are once again questioning the justification of the multiples. At the same time, traditional carmakers with a range of electric vehicles are freely outperforming the indices: Toyota has risen 45% since the beginning of the year, and GM is up 20%.
Tesla has once again failed the rational planning test, according to the Electrek portal. Musk again urged employees to work harder, but it's high time the company's "startup fervour" was replaced by rhythmic work.
Background. As a reminder, Tesla reported its worst quarter in three years, as deliveries of electric vehicles plummeted.