The company's stock has declined by 35% this year, exacerbated by a 20% slump in first-quarter sales compared to the last three months of 2023. Musk stated that the layoffs were to make the company "lean, innovative, and hungry for the next growth phase," citing "duplication" of roles as the company grew. Tesla's headcount had more than doubled in recent years, from 71,000 employees in 2020 to 140,000 by the end of 2023.
Key takeaways:
- Elon Musk has been urged to lay out a vision for Tesla as senior staff leave amid layoffs, with more than 10% of the workforce set to be laid off.
- Drew Baglino, Tesla's head of powertrain and electrical engineering, and Rohan Patel, the public policy and business development VP, have both announced their departures from the company.
- Tesla's stock has declined by 35% this year, exacerbated by a 20% slump in first-quarter sales compared to the last three months of 2023.
- Musk stated that the layoffs were to help the company become "lean, innovative, and hungry for the next growth phase," citing some "duplication" of roles as the company has more than doubled its headcount in recent years.