Tesla is Apparently Planning Further Layoffs as the Company’s Stock Declines

By Sandeep Kumar On Dec 22, 2022

According to reports, Tesla is preparing for further layoffs and another hiring freeze. According to an Electrek insider, the company has temporarily ceased hiring and will need to let off some employees in the first quarter of 2023.

The scope of the layoffs and hiring freeze is unknown. Tesla, on the other hand, is attempting to grow manpower at its manufacturing units. According to reports, the corporation will soon announce plans to build another Gigafactory in Mexico. Tesla has no public relations staff that may be accessed for comment.

Elon Musk, Tesla’s CEO, stated in June that the company would experience a 3.5 percent net drop in headcount over the next few months. A series of layoffs around that time reportedly targeted salaried employees, including hundreds of Autopilot team members.

Despite the fact that Tesla produced a record number of electric vehicles in the fourth quarter, the company’s stock price has fallen by about 65 percent this year and 22 percent this month alone. Musk blamed the stock’s decline on Federal Reserve rate rises.

Tesla, like other businesses, has been experiencing an economic slowdown in recent months. However, it has had to deal with Musk’s prolonged takeover of Twitter, followed by his tumultuous day-to-day administration of that firm which included mass layoffs.

Some Tesla investors have expressed concern about Musk becoming distracted by Twitter and diverting his attention away from the automaker, prompting them to sell their stock. He announced on Tuesday evening that he will step down as Twitter CEO once a replacement is found.

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According to reports, demand for Tesla automobiles has decreased, with some consumers canceling preorders and leases as a result of Musk’s disastrous Twitter reign. According to Electrek, Tesla has even gone so far as to provide discounts on its EVs in some areas.

Due to a larger market slowdown and worries of a recession, several other technologies and automobile companies have laid off workers and/or suspended or slowed employment this year. Rivian, Stellantis, Meta, Apple, Amazon, Snap, Roku, and Peloton are among them.