Tesla has initiated another round of staff layoffs, affecting departments such as software, service, and engineering, according to reports from Electrek. This development follows Tesla’s recent announcement of dismantling its EV charging department and reducing its global workforce by over 10%. The company’s shares saw a slight uptick, but Tesla refrained from immediate comment in response to a Reuters’ inquiry. Recently, concerns from other automakers surfaced as a result of Elon Musk eliminating the entire Supercharger department, which may slow the anticipated charging infrastructure now that automakers are relying on the shift to Tesla’s North American Charging Standard (NACS), which will utilize Tesla Supercharging networks.
The decision to lay off employees comes amid challenges including declining sales and heightened competition in the electric vehicle market. Tesla anticipates incurring expenses exceeding $350 million in the second quarter due to these mass layoffs. Notably, the restructuring also witnessed the departure of several high-ranking executives, including Drew Baglino, Rohan Patel, Rebecca Tinucci, and Daniel Ho.
Despite these setbacks, Tesla remains committed to innovation, indicating plans for new models utilizing existing platforms and production lines. This strategic shift aims to enhance the company’s control over capital expenditures and optimize its operations in a competitive automotive landscape.
Mike Floyd is a finance executive by trade and a car enthusiast at heart. As a CFO with a keen eye for detail and strategy, Mike brings his analytical mindset to the automotive world, uncovering fresh insights and unique perspectives that go beyond the surface. His passion for cars—especially his favorite, the Porsche 911, fuels his contributions to Automotive Addicts, where he blends a love for performance and design with his professional precision. Whether he’s breaking down industry trends or spotlighting emerging innovations, Mike helps keep the site both sharp and forward-thinking.
