Tesla, led by Elon Musk, will eliminate 693 jobs worldwide due to a decline in sales and increased competition

Tesla Layoffs: According to a federal filing on April 27, Elon Musk’s electric vehicle maker, Tesla, wants to lay off 693 workers at its Nevada location, or more than 10% of its worldwide workforce. According to news agency Reuters, this decision was made in the face of declining sales and heightened competition in the electric vehicle (EV) market.

In accordance with US labor rules, the corporation had to provide notice to the Nevada Department of Employment, Training, and Rehabilitation in advance of any major layoffs or closing of a plant. Tesla’s strategic reaction to changing market circumstances and its dedication to compliance are reflected in this move.

Following large layoffs that began earlier this week and affected as many as 6,020 workers in Texas and California, Tesla has announced a reduction drive. These actions are a part of a larger cost-cutting plan designed to deal with the EV market’s ever-changing terrain. As of late 2023, Tesla employed over 140,000 people worldwide; the company’s ongoing layoffs had significantly reduced that number.

Lower Prices in Important Markets
With effect from April 21, Tesla has lowered the price of its electric cars in China and the US due to dwindling sales and rising inventory. In an effort to boost demand in the face of difficult market circumstances, the carmaker has made these strategic changes with an eye on its main markets.

Effects on Inventory Control and Sales
The price reductions are an attempt to address some of the mounting issues that Tesla is facing, such as slow demand and intense competition in the EV market. The firm hopes to boost sales and reduce growing inventory levels by cutting prices, which will help to bring the market back into balance.

Price Adjustment for Model Y
Tesla Inc. has slashed the beginning price of its Model Y SUV to USD 42,990 in the United States, which is the vehicle’s lowest starting price to date. In response to market conditions, the business has also lowered prices for improved Model Y and Model X models, hitting new record lows.

The pricing changes follow a string of noteworthy events for Tesla, including the resignation of two top executives and the disclosure by CEO Elon Musk of a worldwide labor reduction surpassing 10 percent. Tesla is also facing difficulties with its products, as it has recalled over 3,900 Cybertruck pickups because of problems with the accelerator pedal.

Additionally, Tesla said that it will be resubmitting to shareholders the USD 56 billion compensation package that Musk received after a Delaware court voided it earlier this year. These incidents highlight a time of profound change and turmoil for the EV maker on many fronts.