Elon Musk Is Firing 14,000 Employees From Tesla: China Sales Team Hit Hard


Mohul Ghosh

Mohul Ghosh

Apr 17, 2024


Elon Musk’s Tesla has announced plans to lay off over 10% of its global workforce, affecting more than 14,000 employees. Citing duplication of roles and the need for cost reduction, Musk has emphasized the necessity for restructuring as the company enters its next growth phase.

Elon Musk Is Firing 14,000 Employees From Tesla: China Sales Team Hit Hard

Rationale Behind Layoffs

Duplication of Roles and Cost Reduction

In an internal email, Musk highlights the rapid growth of Tesla as a contributing factor to duplicated roles within the organization. As part of efforts to enhance productivity and reduce costs, the company undergoes a comprehensive review, resulting in the difficult decision to downsize its workforce.

Impact of Recent Developments

Decline in Auto Deliveries and Price Cuts

The layoff announcement follows Tesla’s report of a decrease in auto deliveries, despite implementing price cuts to stimulate demand for its electric vehicles (EVs). The decision reflects Tesla’s strategic response to market challenges and the need to streamline operations for future growth.

Upcoming Plans in India

Meeting with Prime Minister Narendra Modi

Amidst the layoffs, Elon Musk is scheduled to meet Prime Minister Narendra Modi during his visit to India this month. The meeting is anticipated to include discussions about Tesla’s plans to establish a new factory in India, aligning with the country’s recent initiatives to promote electric vehicles and attract foreign investment.

India’s Electric Vehicle Policy

Encouraging Investment and Manufacturing

India’s new electric vehicle policy, which aims to reduce taxes on EV imports by 85%, presents an opportunity for companies like Tesla to invest in the market. The policy mandates EV manufacturers to invest a minimum amount and set up manufacturing facilities within three years, aligning with India’s goal to accelerate the adoption of electric vehicles.


Mohul Ghosh
Mohul Ghosh
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