Tesla To Cut 6,000+ Jobs In Texas, California

Tesla announced on Tuesday its decision to lay off 6,020 employees in Texas and California, according to a Reuters report. The announcement preceded Tesla's Q1 earnings report, which fell below Wall Street expectations with a 55 per cent decrease in net income.

Details were disclosed in notices to the states of Texas and California on Monday, complying with U.S. labor laws requiring companies with 100 or more employees to notify 60 days in advance of planned closings or mass layoffs.

According to the notices, Tesla plans to cut 3,332 jobs in California and eliminate 2,688 positions in Texas, with the layoffs set to begin on 14 June.

Elon Musk, CEO of Tesla, noted in a post on his social media platform X on Tuesday, "Tesla has now created over 30,000 manufacturing jobs in California!"

Last week, Tesla announced a reduction of more than 10 per cent in its global workforce due to declining sales and increased competition among EV makers, though the specific number of employees affected was not disclosed.

Additionally, Tesla stated on Tuesday that it would introduce "new models" by early 2025, utilizing its existing platforms and production lines, stepping back from previous plans to produce an all-new model expected to cost $25,000.