Tesla layoffs will impact more than 10% of employees at the electric vehicle (EV) car maker, which also has various AI technologies under development.
Updated April 18, 2024: Among the nuances to note: The layoff plan will include Tesla manufacturing plants in upstate New York -- where employees focus on solar roof tiles and fast-charging EV equipment, Reuters reported. That Buffalo, New York, location also is "set to be the home of its Dojo supercomputer project," the report noted. Still, we don't know if or how many jobs that specifically involve solar roofs, EV charging and Dojo supercomputer experts will be cut.
The Tesla layoff news surfaced in a memo from CEO Elon Musk to employees, according to multiple news services. Rumors about the April 2024 job cuts first surfaced in February 2024.
The Tesla job cuts arrive after the EV car maker's quarterly deliveries declined for the first time in nearly four years, Reuters noted. The company's stock ($TSLA) has declined roughly 31% from January 2024 through April 15, 2024, according to SeekingAlpha.
Tesla's Next Earnings: Low Cost EV Car, Robotaxi and AI Updates Coming?
Among the chatter swirling around the company: Musk in early April 2024 denied rumors that Tesla has abandoned plans for a low-cost EV car starting at $25,000. Moreover, the company plans to unveil its robotaxi on August 8, 2024, he indicated.
What is the true state of Tesla? Investors and customers may receive some clarity on April 23, 2024 -- when Tesla is expected to announce quarterly financial results.
In addition to the current Tesla car lineup, the company's major AI investments involve:
- Full self-driving (FSD) cars, trucks and autonomous vehicles.
- Optimus robots.
- Dojo, a supercomputer that went into production in August 2023.
Still, Musk's commitment to AI development at Tesla has faced question marks since early 2024. At the time, he demanded more company stock in order for him to build the company's AI strategy and associated business.
EV Cars and Charging Network Infrastructure: Slowing Growth, Some Layoffs
Meanwhile, the overall EV market has faced slowing growth rates in multiple regions. Moreover, EV charging infrastructure continues to face reliability and available hurdles in multiple regions. Still, Tesla's Supercharger Network appears to be emerging as a de-facto standard in the United States.
Amid those hurdles, multiple companies -- including ChargePoint and Rivian -- have announced layoffs since January 2024.
Despite those anecdotal job cuts, demand for green jobs in the United States has grown roughly 50% since 2019, according to Lightcast.
In response, companies such as Accenture, EY, Goodwill and Microsoft have launched green jobs training programs.
Note: Blog originally posted April 15, 2024. Updated regularly thereafter.
