Tesla’s (TSLA) “Bloodbath of Layoff” Continues
The bloodbath of layoffs enters the fourth week of April 2024, as Tesla is on a layoff spree. 3 weeks earlier, Tesla announced that they were laying off “more than 10%” of their global workforce. If we look at the numbers, at present, the total workforce of Tesla is over 140,000, and 10% of it is 14,000 people can face overnight layoffs.
According to reports, Daniel Ho, who oversees the new vehicles program, and Rebecca Tinucci, senior director of Tesla’s supercharger business, are among the few higher officials who had been laid off.
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These drastic measures are the result of increasing pressure on the EV manufacturer from decreasing sales and growing carmaker competition, which is made worse by greater financing rates that restrict the adoption of electric vehicles. Tesla revealed last month that it expects to spend more than $350 million in the second quarter as a result of significant layoffs in response to these difficulties.
With declining sales and a severely damaged reputation, Tesla is already facing a potentially disastrous financial year. In the meantime, Tesla’s rivals are catching up quickly.
Basically, Elon’s behavior makes it impossible for Tesla to sell its cars.
Ross Gerber, Tesla Investor
According to the reports, Elon Musk wrote an email to a senior Tesla executive and stated that he wanted to be “absolutely hardcore” in terms of reducing the headcount of the company. Furthermore, Musk made a statement to release those who “don’t pass the excellent, necessary & trustworthy test”.
Senior Executives Among Those Affected by Tesla Layoffs
Tesla and Musk have provided multiple explanations for the layoffs. Initially, Musk explained to the staff that job duplication and inefficient recruiting were the result of Tesla’s rapid expansion in employment over the previous few years.
Multiple news and headlines were made when the two executives, Rebecca Tinucci and Daniel Ho, were laid off. Daniel has been with Tesla for almost ten years and was in charge of the company’s new products division. Rebecca has been a six-year employee and oversees the Supercharger division. Daniel has managed the Model S, Model 3, and Model Y programs in the past.
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Not only this, Jatin Saini, a LinkedIn user shared his sister’s experience in Tesla. He shared a post that stated that her sister, who has been with Tesla for the last 7 years, just received a promotion last month, and now she’s laid off. In his post. Jatin shared a screenshot of the “cold email” his sister received from Tesla. 
This looks like just the beginning of the layoff happening all across the globe. Not just Tesla, according to the most recent data released by layoffs.fyi, 22,330 workers from 57 technological companies were let go in April 2024 alone.
For many, this drastic layoff was a surprise, but Ross Gerber, a Tesla investor, already saw it coming. Gerber went so far as to demand the resignation of Elon Musk and his board of directors.
He tweeted:
He also added, “Only one person responsible for this.”