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Tesla has laid off over 14% of its workforce this year, with the total number of employees dropping to 121000

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Tesla has started a large-scale layoff since the beginning of this year. The latest data shows that the number of employees has decreased from over 140000 at the end of last year to about 12.1, a decrease of over 14%.
This number is calculated based on Tesla's "All Employees" email list on June 17th, which includes both regular and temporary employees.
In April of this year, Tesla CEO Elon Musk announced in a company email that in order to further improve efficiency and reduce costs, the company needs to cut more than 10% of its employees, marking Tesla's fifth large-scale layoff since 2017.
There are reports that Musk's actual target for layoffs may reach 20%, which exceeds initial expectations, partly due to a 25% to 30% decrease in company efficiency since the "long-term boom" period that began in 2019.
This excessive layoff has to some extent disrupted the normal operation of the company. Tesla once disbanded its supercharging team and laid off hundreds of employees, including team leader Rebecca Tinucci, but later some employees were rehired. The repetition of such decisions not only affects the stability of employees, but may also have adverse effects on the long-term operation of the company.
This layoff not only reflects Tesla's urgent need for cost control internally, but also echoes the challenges facing the entire automotive industry.
The main challenges faced by Tesla include the slowing growth of the new energy vehicle market, aging product lines and fierce competition in the Chinese market. In addition, a recent survey shows that Tesla's brand image has also been affected by some of Musk's public statements and personal behavior.
Tesla's sales decline is particularly significant. The mid size SUV model Model Y became the world's best-selling model in 2023, but the company's revenue in the first quarter of 2024 decreased by 9% year-on-year, the largest decline since 2012.
After two years of rapid expansion, the growth of the automotive industry has significantly slowed down this year, and Tesla, like other car manufacturers, is striving to maintain a foothold in the increasingly competitive market.
At the same time as layoffs, Tesla is reorganizing its structure to meet future development needs. Musk mentioned in an employee email that the company will provide stock option rewards to outstanding employees to motivate team morale and innovation.
The incentive measures provided by Tesla first benefited the CEO himself, and Musk's sky high salary plan of up to $56 billion has been voted through. Previously, excessive attention to companies outside of Tesla, such as SpaceX, led to Musk's distraction from management at work, which caused dissatisfaction among other management and investors. Additionally, this compensation plan was challenged in Delaware court for being "unfair to shareholders.". But at the shareholder meeting on June 13th, this plan was ultimately confirmed and officially passed.
Since the beginning of this year, the company's stock price has fallen by a cumulative 27%, while the Nasdaq index has risen by 18%. Tesla is planning to release its new design for a dedicated autonomous taxi on August 8th and will soon launch Musk's fourth overall plan.
Meanwhile, Tesla is seeking new growth opportunities in the context of intensified competition and declining demand in the new energy vehicle market. In addition to continuing to develop its core electric vehicle and autonomous driving technology, energy storage projects have become one of the few areas where Tesla has performed well since entering 2024.
In mid month, Musk announced an ambitious robot mass production plan. Musk announced that starting from 2025, Tesla will limit production of a humanoid robot called Optimus Prime and plans to start testing it at its own factory next year.
Musk himself is quite optimistic about the future of global humanoid robots, stating that the annual production of related products may reach 1 billion units, while the annual production of Optimus Prime robots may reach about 100 million units.
Tesla is expected to release its second quarter production and delivery report in the first week of July. The industry and investors are closely monitoring these data to evaluate the company's ability to respond to current market challenges and its potential for future growth.
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