Tesla is reportedly the latest company to lay off workers, and the number of employees axed is not pretty. A memo from Elon Musk to Tesla employees, received by CNBC Monday, said the company will reduce its headcount by more than 10% globally.
“There is nothing I hate more, but it must be done,” Musk said in the memo as reported by CNBC. “This will enable us to be lean, innovative and hungry for the next growth phase cycle.”
Tesla didn’t respond to a request for comment on the specific number of employees laid off, but it reportedly has more than 140,000 employees globally.
Musk’s electric car company did not have the best of quarters to start its 2024. Tesla made fewer car deliveries than last year during the same period, and analysts estimate it will sell fewer cars in 2024 than it did in 2023, according to Jalopnik. Tesla’s stock price dropped by 5% on Monday to $162.
It probably doesn’t help that Tesla’s latest vehicle, the Cybertruck, has been riddled with problems and mocked for being a terrible product. The monstrosity of a vehicle began making its way to those who pre-purchased the cars back in December, and it’s been one joke after another with the electric truck. Cybertruck owners have been posting about their numerous issues on car forums and are even seeing their cars rust because it’s composed of stainless steel.
The Cybertruck issues are now so bad that Tesla issued a stop-sale order on the electric vehicle. It seems that the accelerator pedal’s metal cover has a defect where it doesn’t stay on the actual pedal. This can result in it getting wedged and pushing the pedal to the floor, which is a very serious issue for any car no matter how ugly it looks.