Tesla laid off 10% of its workforce

On Monday April 15th, Tesla laid off 10% of its workforce. That’s roughly 14,000 employees. Tesla cited the layoffs as an unfortunate necessity to prepare for the next phase of growth. Translation: Likely a slower & more strenuous stage of growth, now that…

1) There is more competition. 2) The EV honeymoon-phase is ending. 3) EV deceptions about sustainability & cost, as well as depreciation & bad ownership experiences that have come to surface. 4) It seems people actually don’t like their government forcing EVs down their throat. 5) China has used EVs as a chess move to infiltrate & undercut legacy carmakers on a global stage.

At S3, we’re no fans of electric cars with iPhone-like driving experiences. But we do like people. And our sympathies do genuinely go out to the roughly 14,000 people who thought they had a career growing with “the world’s most valuable car company in 2023.”

Here’s the email sent to laid off Tesla employees…

“Over the years, we have grown rapidly with multiple factories scaling around the globe. With this rapid growth there has been duplication of roles and job functions in certain areas. 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 have done a thorough review of the organization 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. This will enable us to be lean, innovative and hungry for the next growth phase cycle.

I would like to thank everyone who is departing Tesla for their hard work over the years. I’m deeply grateful for your many contributions to our mission and we wish you well in your future opportunities. It is very difficult to say goodbye.

For those remaining, I would like to thank you in advance for the difficult job that remains ahead. We are developing some of the most revolutionary technologies in auto, energy and artificial intelligence. As we prepare the company for the next phase of growth, your resolve will make a huge difference in getting us there.”

Thanks,
Elon