Tesla to lay off 14 thousand workers amid falling shares

Tesla will lay off more than 10% of its employees, according to CEO Elon Musk.

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In the announcement, Musk said that this decision was made to prepare the company for the upcoming growth. It is worth noting that such strategic steps, although they may seem radical, are often necessary to ensure long-term sustainability and competitiveness. By the way, as of December 2023, Tesla had 140,473 employees.

The layoffs are part of a strategic cost-cutting exercise. In addition, it can serve as an incentive for further development and the search for new markets.

Tesla shares have fallen by 31% in recent months. Although sales of electric vehicles are still gaining popularity around the world, their growth rate has slowed, especially for Tesla. The company is now facing more competition than ever.

By the end of 2023, the Chinese company BYD temporarily deprived Tesla of its status as the world's leading electric vehicle manufacturer. And this year, the Chinese company Xiaomi announced that it will sell its first electric car, which will cost much less than the Tesla Model 3.

Source: CNBC