CEO Elon Musk confirms plans for staff reductions in internal memo
Company faces increasing competition worldwide and slowing demand for electric vehicles leading to price cuts that clipped profit margins
Layoffs aim to cut costs and increase productivity
Quarterly earnings report set for April 23
Tesla announces layoffs of over 10% of global workforce
Tesla reports dismal first-quarter sales below market expectations and first decline in nearly four years
Tesla, the world's most valuable automaker by market value, is laying off more than 10% of its global workforce in an effort to cut costs and increase productivity. The layoffs will affect approximately 15,000 employees out of Tesla's total workforce of about 140,473 as of the end of last year. The news was first reported by tech publication Electrek and later confirmed by Reuters.
Tesla CEO Elon Musk sent an internal memo to employees detailing the plans for staff reductions. The company is looking to identify critical team members and pause some stock rewards while canceling some employee annual reviews. Tesla also reduced production at its Shanghai Gigafactory.
The layoffs come after Tesla reported dismal first-quarter sales, which fell below market expectations and marked the first decline in nearly four years. The company has been facing increasing competition worldwide and slowing demand for electric vehicles, leading to price cuts that have clipped profit margins.
Tesla's quarterly earnings report is set for April 23. The EV maker had previously announced plans to reveal an autonomous robotaxi at an event in August.
Two high-profile executives, Drew Baglino, SVP of Powertrain and Energy, and Rohan Patel, VP of Public Policy and Business Development, have also left the company. Their departures were first reported by Bloomberg.
. Tesla SVP of Powertrain and Energy Drew Baglino leaves the company after 18 years.
. Tesla VP of Public Policy and Business Development Rohan Patel also departs amid layoffs.
Accuracy
Tesla lays off more than 10% of its global workforce, affecting over 14,000 employees.
Deception
(80%)
The author does not make any editorializing or pontification statements in the article. He is simply reporting the facts of the executives leaving Tesla and Musk's statement about layoffs. However, there are some instances of selective reporting as Musk's statement about cutting costs and boosting productivity is not directly quoted but paraphrased by the author. Also, there is no mention of any peer-reviewed studies or sources disclosed in the article.
Their departures come as Tesla is laying off thousands of employees in a bid to cut costs and boost productivity, according to an internal email sent to staff by Musk,
Tesla announced layoffs of 'more than 10%' of its global workforce.
Accuracy
At least 14,000 employees will be laid off based on current headcount.
Tesla is expected to release its quarterly profits report next Tuesday, April 23.
Tesla faces lower sales growth and increased competition in the EV market.
Deception
(30%)
The article contains selective reporting as it only reports details that support the author's position of Tesla laying off more than 10% of its global workforce. The author also uses emotional manipulation by expressing his disappointment and concern for the affected employees. Additionally, there is a lack of disclosure regarding sources.
It is very difficult to say goodbye.
Now those rumors have been confirmed in a company-wide email sent by Musk.
For the last few months, it has looked like Tesla might be preparing for a round of layoffs.
Fallacies
(85%)
The author makes an appeal to authority by quoting multiple independent sources and Tesla's own internal communication. He also uses inflammatory rhetoric by stating that 'remaining employees will wake up to an email from a CEO who is increasingly absent as he spends all of his time addicted to an app he wasted $44 billion on'.
For the last few months, it has looked like Tesla might be preparing for a round of layoffs.
We exclusively reported yesterday that Tesla was prepping a massive layoff.
It also reduced production at Gigafactory Shanghai.
Now those rumors have been confirmed in a company-wide email sent by Musk.
Bias
(80%)
The author expresses a negative sentiment towards Tesla and its CEO Elon Musk, implying that the layoffs are a result of Musk's distasteful behavior and his addiction to an app. This can be considered monetary bias as the author seems to have a personal dislike for Musk and Tesla, which may influence their reporting.
Remaining employees will wake up to an email from a CEO who is increasingly absent as he spends all of his time addicted to an app he wasted $44 billion on (yet demands more stock while firing 10% of the company)
The fact that it has shaken up these sectors so successfully is proof that this approach has been effective. And that helps in recruiting as well... However, Tesla is 20 years old now. It's an enormous and established company. It needs to mature and have more established processes, less turnover, and more security for its employees.
These sorts of things help reduce errors and increase morale. But the layoffs can't be helping with morale.
While Pandora's box is open and EVs are here to stay at this point, regardless Tesla’s ups and comparatively-rare downs, the rest of the industry is still trying hard to pump the brakes on the transition, even if it means America will be less competitive if they get their way. Tesla is one of the few entities that is large enough and committed enough to dragging those timelines forward, whether the rest of the industry likes it or not.
Tesla is preparing to lay off more than 10% of its global workforce
Approximately 15,000 employees will be affected by the layoffs
Tesla faced increasing competition in the EV market and an escalating price war in China, leading to reduced prices and cut margins
Accuracy
Tesla faces lower sales growth and increased competition in the EV market
Tesla abandoned plans to produce a budget-friendly starter car called Model 2
Deception
(50%)
The article reports on a leaked internal email from Elon Musk regarding Tesla's plans to lay off more than 10% of its workforce. While the information in the email is likely true, the author does not disclose that this information was obtained through a leak and presents it as if it came directly from Tesla or Musk himself. This is an example of selective reporting, as only the details that support the author's position (the layoffs) are reported, while other relevant information (Tesla's declining deliveries and increasing competition in the EV market) are not mentioned. Additionally, there is emotional manipulation through phrases like 'TESLA STOCK SLIDES ON BIG DELIVERIES SHORTFALL' which creates a negative emotional response in readers without providing any context or explanation.
Tesla is preparing to lay 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 report.
The reported staffing reduction will affect about 15,000 employees.
