Tesla to Cut Over 6,000 Jobs in Texas and California Ahead of Quarterly Results

Tesla has announced plans to lay off 6,020 employees in Texas and California as part of its efforts to address slowing demand and falling margins in the electric vehicle market. The job cuts come ahead of Tesla’s quarterly results, where CEO Elon Musk is expected to outline the company’s strategy to navigate these challenges.

Last week, Tesla revealed a more than 10% reduction in its global workforce amidst declining sales and increasing competition among electric vehicle manufacturers. 

Tesla has now created over 30,000 manufacturing jobs in California! https://t.co/jjFX4FVlM2

— Elon Musk (@elonmusk) April 23, 2024

Specific numbers regarding the impact of the job cuts were disclosed in notices to the states of Texas and California, as mandated by U.S. labor law.

According to the notices, Tesla will eliminate 3,332 jobs in California and 2,688 positions in Texas, effective June 14. Musk highlighted Tesla’s previous job creation in California but did not comment directly on the layoffs.

Despite the layoffs, Tesla’s stock saw a 2% increase ahead of its first-quarter results, breaking a seven-session losing streak. The job cuts in Texas represent 12% of Tesla’s workforce in the greater Austin area, where its gigafactory and headquarters are located.

Additionally, the global job cuts will impact 285 employees at Tesla’s premises in Buffalo, New York, which houses the labeling team for its Autopilot driver assistance software.

Tesla’s headcount stood at over 140,000 late last year, reflecting a significant increase from around 100,000 at the end of 2021. The company has faced challenges in refreshing its aging models amidst consumer preference for less expensive gasoline-hybrid vehicles and increased competition from rivals in China.