Tesla Inc, a leading electric vehicle (EV) manufacturer, has announced a significant reduction in its workforce. As of December 2023, the company had 125,665 employees, marking a 10.5% decrease from the previous year.
Key Events Leading to Workforce Reduction
In April 2024, Tesla implemented a global layoff, affecting approximately 10% of its workforce, which translates to over 14,000 employees. Following this layoff, several senior executives, including Rohan Patel, Drew Baglino, and Rebecca Tinucci, left the company.
Employee Headcount Trends
Prior to the layoff, Tesla’s employee headcount had been steadily increasing from 2019 to 2023. However, the global layoff resulted in a year-on-year drop in employee headcount for the first time since 2019.
Impact on Deliveries and Revenue
Tesla reported its first decline in global EV deliveries in over a decade in 2024, with 1.79 million vehicles delivered, down from 1.81 million in 2023. Despite this decline, the company’s stock rose after hours on Wednesday, driven by promises of new and affordable models, as well as the upcoming launch of its autonomous ride-hailing service in Texas.
Stock Performance
Tesla’s stock closed up 2.9% at $400.28 on Thursday, despite the company reporting revenue and earnings below expectations. The announcement of new vehicle models and the autonomous ride-hailing service has driven investor sentiment, contributing to the stock’s positive performance.
Future Plans and Developments
The company has promised to start testing its autonomous ride-hailing service in Texas in June, with vehicles deployed with its full self-driving (FSD) driver assistance technology. This development is expected to further boost investor confidence and drive the company’s growth.
Conclusion
Tesla’s workforce reduction and decline in deliveries have not dampened investor sentiment, as the company’s future plans and developments continue to drive excitement and growth. As the EV market continues to evolve, Tesla remains a key player, with its innovative technology and commitment to sustainable energy solutions.