On Friday, June 21st, the media checked and found that the number of people on the "all-staff" email list revealed that as of June 17th, Tesla had already cut over 14% of its employees this year.$Tesla (TSLA.US)$The number of people on the "all-staff" email list revealed that as of June 17th, Tesla had already cut over 14% of its employees this year.

This figure was calculated by the media. It originated from June 17, when Musk sent an email to "all employees" offering stock options to outstanding employees in the coming weeks and stating, "Any employee who has made outstanding contributions to the company will also receive options rewards." Previously, the media had reported that Tesla had suspended its performance-based equity reward program and planned to restart it later. According to Tesla's financial reports, the total number of global employees at the end of December 2023, including temporary workers, was 140,473. After a wave of large-scale layoffs, the "all-staff" email list now shows that there are about 121,000 employees (including temporary workers). Therefore, the media can calculate that Tesla's total number of employees has decreased by more than 14% since the end of 2023. Tesla has not yet responded to this news.

During this massive layoff, two executives, including Drew Baglino, who led Tesla's battery technology, have left. Investors expressed concern about Tesla's future succession plan, and Tesla's stock price fell more than 5.5% overnight on Monday. In fact, Musk has overshot several layoffs. For example, Tesla disbanded its supercharging team, with hundreds of employees and team leader Rebecca Tinucci all being cut. According to posts on LinkedIn, Tesla later rehired some of the laid-off employees from the team. Signs of layoffs have been seen since the first quarter earnings conference call in April when Musk said:" After the"long-term prosperity" that began in 2019, Tesla's efficiency has decreased by 25% to 30%. We have made some adjustments, but now is the time to reorganize the company and prepare for the next phase of growth." This large-scale layoffs are happening while Tesla's sales are declining. Tesla is facing unfavorable factors such as a slowdown in the growth rate of the new energy vehicle industry, aging of electric vehicle models, intensified competition in China, and a recent survey showing that the Tesla brand image has been damaged due to Musk's "quirky behavior" and "political remarks". After two years of rapid expansion, the entire auto industry has slowed down this year, and many automakers are struggling for a 1% market share. Moreover, the slowdown in industry growth has a greater impact on Tesla, because their Model Y will be the world's best-selling model in 2023. Even as the industry leader, Tesla is struggling under heavy pressure and has been forced to lower prices and promote sales, but with little effect. Tesla's Q1 financial results showed that the company's revenue fell 9% year-on-year, the largest drop since 2012.

Currently, Tesla has not responded to this news.

Will Tesla continue to lay off employees in July?

In April of this year, the media reported that Musk notified employees through an "all-staff" email that the company would lay off more than 10% of its employees globally, about 14,000 employees. This was the fifth large-scale layoff by Tesla since laying off 2% of its employees in 2017. In April, the media also reported that Musk's goal was to cut 20% of the workforce, and he even said that this number might be even higher.

This massive layoff includes two executives, including Drew Baglino, who lead Tesla's battery technology. Investors expressed concern about Tesla's future succession plan, and Tesla's stock price fell more than 5.5% overnight on Monday.

In fact, Musk has overshot layoffs several times. For example, Tesla disbanded its supercharging team, with hundreds of employees and team leader Rebecca Tinucci all being cut. According to posts on LinkedIn, Tesla later rehired some of the laid-off employees from the team.

There were signs of layoffs. During a Q1 earnings conference call in April, Musk said:"After the"long-term prosperity" that began in 2019, Tesla's efficiency has decreased by 25% to 30%. We have made some adjustments, but now is the time to reorganize the company and prepare for the next phase of growth."

"After the 'long-term prosperity' that began in 2019, Tesla's efficiency has decreased by 25% to 30%. We have made some adjustments, but now is the time to reorganize the company and prepare for the next phase of growth."

This massive layoff is happening at a time when Tesla's sales are declining. Tesla is facing unfavorable factors such as a slowdown in the growth rate of the new energy vehicle industry, aging of electric vehicle models, intensified competition in China, and a recent survey showing that Tesla's brand image has been damaged due to Musk's "quirky behavior" and "political remarks". After two years of rapid expansion, the entire auto industry has slowed down this year, and many automakers are struggling for a 1% market share. Moreover, the slowdown in industry growth has a greater impact on Tesla, because their Model Y will be the world's best-selling model in 2023.

Even as the industry leader, Tesla is struggling under heavy pressure and has been forced to lower prices and promote sales, but with little effect. Tesla's Q1 financial results showed that the company's revenue fell 9% year-on-year, the largest drop since 2012.

According to an anonymous Tesla employee, some factory workers are afraid that there may be more layoffs in July if the second quarter's performance is poor.

In the face of a declining industry and falling stock prices, Musk is trying to turn the tide. He has promised investors that the company will soon release his fourth "master plan" and that Tesla will announce a "dedicated self-driving taxi" design on August 8. Tesla is expected to release its Q2 production and delivery report in the first week of July.

Tesla's stock price rose 0.79% on Friday to close at $181.71. As of Friday's close, the stock has fallen about 26.3% this year, while the Nasdaq has risen 18% over the same period.

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