(NationRise.com) – A global automotive manufacturer has announced layoffs that will affect 10% of its workforce worldwide.
The announcement coincides with Tesla’s discussion of its ‘next phase of growth.’ Elon Musk, Tesla’s CEO, revealed on April 15th that the company’s rapid global expansion has led to job and responsibility duplications. He emphasized the need to balance costs and productivity in this evolving landscape.
Musk said, “There is nothing I hate more” in an email to employees but also claimed that it must happen. The email was sent soon after Tesla fell short of its first-quarter expectations. It’s the first time the electric vehicle maker reported reduced deliveries in almost four years. The lackluster sales persisted after the company slashed prices for its vehicles. That announcement cost the company $30 billion in market value.
The company has experienced phenomenal growth over the past few years, leading it to become the most valuable vehicle manufacturer in the world. However, its vehicles are increasingly viewed as outdated as more automakers roll out their own lines of electric vehicles. Plus, interest rates have ticked higher, causing consumers to exercise more prudence when considering vehicle prices.
The announcement also comes just months after media outlets published reports of a Tesla robot attacking one of its factory workers in Texas. The worker sustained injuries but survived.
Tesla faced another significant setback early in 2024 after it had to recall 200,000 vehicles over a software glitch. The glitch, which prevented the backup camera from working, impacted several models with self-driving capabilities. The company has also faced government pressures for additional recalls after consumer complaints of crashes occurring during autopilot. The company called those reports “wildly misleading” and said the accidents stemmed from the driver’s failure to pay attention. Sweden has recently launched additional investigations into possible suspension failures in Tesla vehicles.
BYD, a Chinese automaker, has proven to be highly competitive after releasing electric vehicles at a much lower price. It recently overtook Tesla as the world’s largest EV builder. The Chinese company also boasts the support of billionaire Warren Buffet.
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