After years of rapid growth, the electric car market has cooled. Now Tesla boss Elon Musk reportedly wants to put the staff in reverse gear. Grünheide is also said to be affected.
According to a report, Tesla boss Elon Musk wants to cut more than a tenth of all jobs in the company worldwide due to the slump in the electric car market. It is very important to look at every aspect of the company in terms of costs and productivity, the industry portal Electrek quoted from an internal email from the company boss.
After a thorough examination, the company decided to reduce the number of jobs by more than ten percent. The “Handelsblatt” also reported on the email. According to its own information, Tesla employed a good 140,000 people at the end of last year.
Tesla is feeling the effects of the price war in the largest car market, China, and delivered surprisingly fewer vehicles in the first quarter than a year earlier, at just under 387,000 cars. Even before that, doubts about the market’s pace of growth had increased following years of strong growth.
In the USA, customers are increasingly turning to combustion and hybrid vehicles. In China, Tesla faces more competition from domestic manufacturers. In Europe, Tesla initially had to temporarily suspend production in Grünheide near Berlin due to delivery bottlenecks for components caused by the rerouting of ships following attacks by Yemeni Houthi rebels in the Red Sea and an attack on the factory’s power supply. According to “Handelsblatt”, Grünheide is also affected by job cuts. Around 3,000 of the 12,500 employees there would be laid off, the newspaper reported, citing two internal sources.
With the rapid growth of the past few years, there have been duplicate functions in some areas, according to Electrek in Musk’s email. The job cuts would allow the company to be lean, innovative and hungry for the next phase of growth.
Source: Stern
