Tesla (Nasdaq: TSLA) is facing growing rumors of substantial layoffs in the coming weeks, potentially impacting up to 20% of its workforce. This comes as the electric vehicle giant grapples with production issues and slowing demand for its vehicles.
According to reports, Tesla has informed employees at its Gigafactory Texas that Cybertruck production shifts will be shortened, a possible sign of reduced output. The company previously had workers on 12-hour shifts, which will now be reduced to 11 hours during the day and 10.5 hours at night.
This move follows Tesla’s decision last month to cut production at its Shanghai Gigafactory, the automaker’s most productive facility. The company has also been steadily adding vehicles to its inventory, raising concerns about softening demand.
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Tesla’s recent financial results have added to the uncertainty, with the company reporting a year-over-year decline in deliveries that fell short of even the most pessimistic analyst forecasts. While Tesla cited production challenges as a factor, it struggled to explain the significant increase in its inventory.
Tesla CEO Elon Musk has expressed concerns about the global economy, which may be driving the company’s move to slow production and potentially cut staff.
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The Cybertruck has also faced its own challenges. The company has halted deliveries of the model, reportedly due to issues with the accelerator pedal. This comes as a relatively high number of initial Cybertruck deliveries have experienced breakdowns and required service.
Information for this story was found via Electrek, Insider, the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
