Tesla to lay off over 10% of global workforce: Reports

ISTANBUL

US-based global electric carmaker Tesla will lay off more than 10% of its workforce around the world, according to reports on Monday.

"As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity," several media outlets cited CEO Elon Musk as saying in an internal memo to employees.

"There is nothing I hate more, but it must be done. This will enable us to be lean, innovative and hungry for the next growth phase cycle," he added.

Tesla had more than 140,000 employees in total as of December 2023.

The decision came amid a price war in China's electric vehicle market, with Tesla starting to feel the heat.

Chinese automaker BYD surpassed Tesla for the second consecutive year by producing over three million vehicles in 2023, including both hybrid and battery-only powered, against Tesla's 1.84 million full-electric vehicles. Most BYD cars have lower prices compared to Tesla.

China-based global smartphone manufacturer Xiaomi announced last month that it will sell its electric vehicle SU7 cheaper than Tesla in China.

Tesla's stock price was down 3% at 10.34 a.m. EDT (1434GMT) on the Nasdaq.