Tesla Makes Its 3 Millionth Car In California Despite Rising Inventory, Layoffs

Benzinga ·  May 18 10:45

EV giant Tesla Inc (NASDAQ:TSLA) said on Friday that its factory in California and its gigafactory in Nevada together made its 3 millionth electric vehicle and it's a deep metallic blue.

What Happened: "Congrats Tesla Fremont + Giga Nevada on building their 3 millionth car!" Tesla wrote on X. The post was adjoined by a photograph of celebrating employees with the blue landmark Tesla in their midst.

Congrats Tesla Fremont + Giga Nevada on building their 3 millionth car!

— Tesla (@Tesla) May 17, 2024

Giga Nevada does not make production vehicles by itself. Instead, it is focused on electric motors, energy storage products, vehicle powertrains, and batteries. The Fremont factory, in contrast, makes Tesla's mass-market offerings Model 3 and Y, as well as the more premium Model S and X.

Why It Matters: The production milestone comes amidst layoffs. Last month, Tesla announced plans to cut at least 10% or 14,000 of its global workforce in an effort to cut costs. At least 3,300 jobs were cut in California and nearly 700 in Nevada.

As part of the same strategy, Tesla will lay off nearly 600 more employees at its Fremont-based manufacturing plant and its engineering headquarters in Palo Alto.

Tesla's global vehicle inventory jumped 87% from last year to 28 days of supply in the first quarter. The company's global deliveries fell to 386,810, marking an 8.5% year-on-year dip as demand dwindled. The company, however, produced 433,371 vehicles in the time frame.

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