Tesla, the electric vehicle company owned by Elon Musk, is gearing up to reduce its global workforce by more than 10%, equating to over 14,000 employees potentially losing their jobs due to role duplications within the organization.
CEO Musk, in an internal email obtained by electrick.com, emphasized the necessity of cost reduction and eliminating role redundancies to facilitate the company’s forthcoming growth phase.
“As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity. As part of this effort, we’ve done a thorough review of the organisation and made the difficult decision to reduce our headcount by more than 10% globally. There is nothing I hate more, but it must be done,” wrote Musk.
This move follows closely on the heels of Tesla reporting a decline in vehicle deliveries, despite implementing price cuts on its electric vehicles to stimulate demand.
In other developments, Elon Musk is slated to meet with Prime Minister Narendra Modi during his upcoming visit to India later this month. Musk is expected to unveil plans for establishing a new Tesla factory in India. “Excited to meet PM Narendra Modi in India!” he shared on his X profile.
Although the meeting date remains unspecified, PM Modi has expressed openness to global investments in India. Musk previously mentioned that introducing electric vehicles in India would be a logical step for Tesla.
This visit coincides with India’s recent announcement of an electric vehicle policy aiming to slash import taxes on EVs by nearly 85%. The policy mandates EV manufacturers to invest a minimum of ₹4,150 crore within three years to establish local manufacturing facilities in India.