Internal email sent by Elon Musk | Tesla to cut at least 14,000 jobs

In his letter, the manager explains that Tesla has “grown rapidly” in recent years, a growth that has created “repetition (…) in certain activities”, according to him.

Elon Musk indicates that the manufacturer is “preparing for its next phase of growth” and, in doing so, seeks to achieve “cost savings” and “production breakthroughs”.

“We did a thorough analysis and took the decision to reduce our workforce by more than 10% worldwide,” said the entrepreneur.

In its latest annual report, Tesla indicated that it had around 140,000 workers at the end of December, which means that the manufacturer will release at least 14,000 workers.

Asked by AFP, Tesla did not immediately respond.

“There’s nothing I hate more” than layoffs, “but we have to get through it,” wrote Elon Musk. “This will depend on us, make us more creative and motivated for our next cycle of growth. »

After years of success, the American automaker is facing a difficult period.

It gave way to Chinese BYD as the world’s leading manufacturer of electric vehicles in the last quarter of 2023.

Overall, Tesla, which has positioned itself from the start rather than the top, is facing competition from low-cost Chinese automakers.

In the first quarter of 2024, it produced fewer cars than expected and its production fell by 1.6% year-on-year.

Reuters reported ten days ago that the group had given up on producing the Model 2, the cheapest model of all models, at around $25,000. The news was denied, half-heartedly, by Elon Musk on X (formerly Twitter).

Tesla also plans to present its robotaxi on August 8, a vehicle that does not require a human driver, according to Elon Musk.

“First-quarter shipments were disappointing, with both Chinese and global demand for electric vehicles reported,” said analysts at Wedbush Securities.

“Tesla is stuck between two ‘growth waves’ and investors’ patience is starting to wane,” they added.

Also on Monday, Tesla’s senior vice president, Drew Baglino, announced his departure from the X. He was one of the familiar faces of the manufacturer, where he spent 18 years.

According to Bloomberg, another vice president, Rohan Patel, will also leave the company.

At around 10:35 am (Eastern time), Tesla shares lost 2.88% on the New York Stock Exchange.