Tesla Announces Layoffs of Over 10% Global Workforce: Impacting 15,000 Employees Amidst Weak First Quarter Deliveries and Intensifying Competition

Sparks, Nevada United States of America
Affects approximately 15,000 employees
Layoffs follow weak first quarter deliveries and increasing competition in EV market
Quarterly deliveries declined for the first time in nearly four years and fell short of Wall Street analysts' estimates
Tesla announced layoffs of over 10% global workforce
Tesla employed about 140,473 workers worldwide as of December 2023
Two executives, Drew Baglino and Rohan Patel, also left the company on April 16
Tesla Announces Layoffs of Over 10% Global Workforce: Impacting 15,000 Employees Amidst Weak First Quarter Deliveries and Intensifying Competition

Tesla, the world's most valuable automaker, announced on April 16, 2024 that it would be laying off more than 10% of its global workforce. The cuts will impact approximately 15,000 employees and come after weak first quarter deliveries and increasing competition in the electric vehicle market. According to a filing with the Securities and Exchange Commission, Tesla believes it is important to look at every aspect of the company for cost reductions and increasing productivity as part of its next phase of growth.

The layoffs follow Tesla's abandonment of plans to produce a budget-friendly starter car called Model 2. The automaker has also faced an escalating price war in China, a key market for the EV maker, which has forced it to reduce prices and cut into its margins.

Tesla employees were told via email on Sunday night that their positions had been eliminated by the restructuring. The cuts will be effective immediately and impacted staff will receive information regarding their severance within 48 hours. Two of Tesla's top executives, Drew Baglino and Rohan Patel, also left the company on April 16.

The layoffs come after Tesla reported that its quarterly deliveries declined for the first time in nearly four years and fell short of Wall Street analysts' estimates. The company delivered roughly 387,000 vehicles in the first quarter, well below expectations of about 443,000 and an 8.5% decrease compared to the first quarter of last year.

Tesla employed about 140,473 workers worldwide as of December 2023. The reported staffing reduction will affect about 15,000 employees.

Some Tesla factory employees only realized they had been laid off when their badges didn't work on Monday morning. Staff at the Nevada factory faced a roughly two-hour line to get into the facility due to badge checks. Security guards scanned the badges of workers coming out of shuttles and sent those who had been laid off back in separate vans.

Tesla is not the first company to unceremoniously lay off employees while they are trying to access their former place of work. Last year, some former Google employees reportedly learned they had been laid off when they couldn't badge into the office.


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Confidence

96%

Doubts
  • Is the number of affected employees accurate?
  • What is the exact reason for Tesla's decision to abandon plans for Model 2?

Sources

80%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Tesla layoffs hit high performers, some departments slashed, sources say

TechCrunch Rebecca Bellan Tuesday, 16 April 2024 12:35
  • Unique Points
    • Tesla laid off more than 10%, or about 14,000 workers, across the global organization
    • High performers were among those laid off, according to multiple sources
    • Two of Tesla’s top executives, Drew Baglino and Rohan Patel, both left the company
  • Accuracy
    • Some departments saw layoffs beyond the 10% outlined in the companywide email, with one manager reporting a 20% reduction in staff
  • Deception (30%)
    The article contains selective reporting and emotional manipulation. The authors only report details that support their position of Tesla's poor financial performance leading to layoffs, while omitting any information that may contradict this narrative. They also use phrases like 'many really good players too' and 'shock at the number of talented employees cut' to elicit an emotional response from readers.
    • The layoffs were made to reduce costs and increase productivity to prepare for its next phase of growth,
  • Fallacies (85%)
    The authors use inflammatory rhetoric by stating that 'many of the laid-off employees were high performers' and 'some really good players too'. This is an appeal to emotion and can be considered a form of informal fallacy. The authors also quote sources who express shock at the number of talented employees cut, which further adds to the emotional appeal. Additionally, there are instances of ambiguous statements such as 'many projects have fallen lower on Tesla’s priority list' and 'the company is going to be stronger than ever'. These statements can be open to interpretation and may contain hidden assumptions or logical fallacies.
    • ]I lost 20% of my team, some really good players too[
    • many of the laid-off employees were high performers
    • some projects have fallen lower on Tesla’s priority list
  • Bias (95%)
    The authors use language that depicts the layoffs as disproportionately affecting high performers and some departments being slashed beyond the 10% outlined in the company-wide email. They also quote an anonymous source expressing shock at the number of talented employees cut.
    • Many of the laid-off employees were high performers, according to two sources who spoke to TechCrunch on condition of anonymity.
      • One manager told TechCrunch that 20% of their employees were cut.
      • Site Conflicts Of Interest (100%)
        None Found At Time Of Publication
      • Author Conflicts Of Interest (100%)
        None Found At Time Of Publication

      87%

      The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
      (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

      A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

      Tesla to lay off more than 10% of workforce

      Fox Business Network Stephen Sorace Tuesday, 16 April 2024 18:51
      • Unique Points
        • Tesla abandoned its plans to produce a budget-friendly starter car called Model 2
      • Accuracy
        • Tesla is laying off more than 10% of its global workforce
        • The reported staffing reduction will affect about 15,000 employees
        • Tesla delivered roughly 387,000 vehicles in the first quarter
      • Deception (75%)
        The article reports facts about Tesla's decision to lay off more than 10% of its workforce and the reasons behind it. However, there are some instances of selective reporting and emotional manipulation that reduce the article's score. The author quotes Elon Musk's internal email regarding cost reductions and productivity increases, but fails to mention that Musk also accused Reuters of lying in response to an article about Tes abandoning plans for a budget-friendly car. This omission is an example of selective reporting, as it presents only one side of the story. Additionally, the author uses phrases like 'world's most valuable automaker' and 'escalating price war in China' that aim to evoke strong emotions in readers and manipulate their perception of Tesla and its competitors.
        • The author fails to mention that Musk accused Reuters of lying in response to an article about Tes abandoning plans for a budget-friendly car.
        • The author uses the phrase 'world's most valuable automaker' to evoke strong emotions in readers and manipulate their perception of Tesla.
      • Fallacies (85%)
        The author makes an appeal to authority by quoting the SEC filing and Elon Musk's internal email. He also uses inflammatory rhetoric by stating 'the world's most valuable automaker' and 'escalating price war in China'. No formal fallacies were found.
        • Tesla confirmed its laying off more than 10% of its global workforce following weak first quarter deliveries and increasing competition in the electric vehicle (EV) market, according to a filing with the Securities and Exchange Commission.
        • This action will prepare Tesla for our next phase of growth, as we are developing some of the most revolutionary technologies in auto, energy and artificial intelligence
        • Tesla did not immediately respond to FOX Business Digital’s request for comment.
        • The automaker has also faced an escalating price war in China, a key market for the EV maker, as low-cost competitors like BYD forced it to reduce prices and cut into its margins.
      • Bias (100%)
        None Found At Time Of Publication
      • Site Conflicts Of Interest (100%)
        None Found At Time Of Publication
      • Author Conflicts Of Interest (100%)
        None Found At Time Of Publication

      85%

      The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
      (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

      A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

      Tesla stock under pressure as top executives depart

      Yahoo Finance Seana Smith Tuesday, 16 April 2024 18:52
      • Unique Points
        • Tesla's global job cuts will affect its largest markets: the US and China.
        • Two of Tesla’s top executives, Drew Baglino and Rohan Patel, have left the company.
      • Accuracy
        • The layoffs will impact sales and engineering divisions.
        • Tesla stock is down over 30% since the start of the year.
        • The company’s job cuts could affect up to 20% of people in some divisions.
      • Deception (50%)
        The article contains selective reporting as it only mentions job cuts and executive departures without providing any context about the reasons behind them. The authors also make editorializing statements such as 'maybe the worst of Tesla's troubles is not behind it' and 'it's really points to the narrative that it's going to likely be more tough times ahead for Tesla'. These statements are not based on facts and are intended to manipulate the reader's emotions.
        • We also know obviously across the board, when it comes to that lower than expected demand, that has really been a real issue here for Tesla.
        • But maybe the worst of Tesla’s troubles is not behind it. And we could see a rocky couple of months ahead.
        • Shares of Tesla (TSLA) are trading lower following a Reuters report that the company’s global job cuts will affect its largest markets: the US and China.
      • Fallacies (90%)
        The article contains an appeal to authority when Yahoo Finance anchors Seana Smith and Madison Mills discuss how Tesla could see rocky months ahead based on economic data. However, no formal or dichotomous fallacies were found in the text provided.
        • Yahoo Finance anchors Seana Smith and Madison Mills discuss how Tesla could see rocky months ahead, particularly given certain consumer pressures.
      • Bias (95%)
        The author expresses a negative outlook towards Tesla's current situation and future prospects, implying potential bias against the company. However, no clear examples of religious or ideological bias were found.
        • It's just a series of a long list of negative developments here for Tesla.
          • ]Shares of Tesla are trading lower following a Reuters report that the automaker's global job cuts will affect its largest markets: the US and China.[
            • The fact that the stock has been under significant amount of pressure this year. Shares are off over 30% since the start of the year.
            • Site Conflicts Of Interest (100%)
              None Found At Time Of Publication
            • Author Conflicts Of Interest (100%)
              None Found At Time Of Publication

            79%

            The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
            (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

            A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

            Tesla will lay off more than 10% of global workforce: Read the Elon Musk memo

            CNBC News Lora Kolodny, Monday, 15 April 2024 11:38
            • Unique Points
              • Tesla trimmed the subscription price of its premium driver assistance system for U.S. customers against Musk’s previous pledges.
            • Accuracy
              • Tesla is laying off more than 10% of its global workforce.
              • Tesla laid off more than 10%, or about 14,000 workers, across the global organization
              • Tesla delivered roughly 387,000 vehicles in the first quarter
            • Deception (30%)
              The article contains selective reporting as it only mentions the number of layoffs and Tesla's declining sales without providing context about potential reasons for these events. The author also uses emotional manipulation by implying that Tesla is facing 'more competition than ever' and 'strongest competition from China'. Additionally, the article makes a statement about Musk recognizing China as a strong competitor without directly quoting him.
              • Some would-be Tesla customers are now skipping the brand owing to Musk’s incendiary rhetoric
              • Chinese smartphone company Xiaomi in March said it would sell its first electric car for far less than Tesla’s Model 3.
              • To end 2023, China’s BYD temporarily dethroned Tesla as the world’s top EV maker.
              • The company will lay off more than 10% of its global workforce, according to a memo sent to employees by CEO Elon Musk.
            • Fallacies (85%)
              The article contains several informal fallacies and an appeal to authority. The author uses inflammatory rhetoric by stating that 'Some would-be Tesla customers are now skipping the brand owing to Musk’s incendiary rhetoric'. This is an example of a hasty generalization fallacy, as it assumes that all potential Tesla customers are avoiding the brand due to Musk's statements. The author also quotes Elon Musk making statements about competition and Tesla's future growth, which can be considered an appeal to authority fallacy if taken out of context or without critical evaluation.
              • Some would-be Tesla customers are now skipping the brand owing to Musk’s incendiary rhetoric
              • As we prepare the company for our next phase of growth, your resolve will make a huge difference in getting us there. - Elon Musk
            • Bias (100%)
              None Found At Time Of Publication
            • Site Conflicts Of Interest (100%)
              None Found At Time Of Publication
            • Author Conflicts Of Interest (100%)
              None Found At Time Of Publication

            95%

            The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
            (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

            A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

            Some Tesla workers get badge scan, realize layoff

            Business Insider Grace Kay Tuesday, 16 April 2024 18:54
            • Unique Points
              • Some factory employees only realized they were laid off when their badges didn’t work.
            • Accuracy
              • Tesla laid off more than 10% of its workforce on Sunday night.
              • Tesla laid off more than 10%, or about 14,000 workers, across the global organization
              • Tesla is laying off more than 10% of its global workforce.
            • Deception (100%)
              None Found At Time Of Publication
            • Fallacies (100%)
              None Found At Time Of Publication
            • Bias (100%)
              None Found At Time Of Publication
            • Site Conflicts Of Interest (100%)
              None Found At Time Of Publication
            • Author Conflicts Of Interest (100%)
              None Found At Time Of Publication