Tesla, led by CEO Elon Musk, is facing global job cuts that will impact sales teams in China, the company’s second-largest market. This decision comes as Tesla grapples with decreased sales and heightened competition in the electric vehicle sector.
Reports suggest that more than 10% of Tesla’s global workforce will be laid off, with employees in China’s sales department already receiving notifications. It is anticipated that over 10% of the sales team in China will be affected, with other departments also feeling the repercussions of the downsizing.
The job cuts in China coincide with Tesla’s struggle against fierce competition in the country, home to the largest auto market globally. Rivals like BYD are aggressively rolling out new electric vehicle models, triggering a price war in the market.
Industry analysts attribute Tesla’s global job cuts to cost pressures arising from its focus on developing new models and artificial intelligence technologies. This move comes after Tesla reported a decline in global vehicle deliveries for the first time in nearly four years earlier this month.
Tesla China has not yet commented on the matter, and individuals familiar with the situation chose to remain anonymous due to media restrictions. Requests for comments from local governments in Shanghai and Beijing have also gone unanswered.
It remains to be seen how these job cuts will impact Tesla’s operations in China and beyond as the company navigates a challenging and competitive landscape.
