Tesla, Inc. (TSLA) is on another employee firing spree after laying off 10% of its global workforce in the middle of last month. These Tesla layoffs were accompanied by unexpected departures of some senior Tesla executives as well.
This employee firing expanded by letting go of the entire Supercharger team of the company towards the end of April.
However, according to the company CEO and Technoking Elon Musk, the Tesla Supercharger network will still be growing but at a slower pace. For the foreseeable future, the EV automaker will focus on the completion and further development of the existing locations.
Musk wrote on X:
Tesla still plans to grow the Supercharger network, just at a slower pace for new locations and more focus on 100% uptime and expansion of existing locations.
According to Business Insider, a new wave of Tesla layoffs has picked up pace since Sunday night. Before appearing at work on Monday, several employees received their layoff email from the company.
Multiple Tesla employees posted resentment notes on their LinkedIn profiles about the sudden layoff. One senior employee wrote:
Last night, Elon Musk incorporated me into their massive layoff crew costing me my career, my health benefits, and my sanity. Nothing but an email to make us aware of how disposable we were as employees.
I’ve never been so dedicated to growing withing a company and working endless days.. nights.. holidays.. weekends.
Later on, the ex-employee removed the above post from her LinkedIn profile. She may have done it to avoid any legal consequences. However, the note went viral on X (Twitter) until she removed it from her profile.
Cutting a large number of jobs at the company is a cost-cutting measure by Tesla as it announced last month in the first round of layoffs.
“As we prepare the company for the next phase of growth, we have to make the hard but necessary decision to reduce our headcount by over 10%,” Tesla CFO Vaibhav Taneja said during the Tesla Q1 2024 earnings call last month.
Tesla is trying its best to gain the confidence of its investors by taking cost-cutting measures. This has certainly helped Tesla gain back traction on the stock market.
Tesla’s stock price closed at its lowest year-to-date (YTD) value of $142.05 on 22nd April. After the Q1 2024 earnings call, Tesla’s share price started to climb once again. It closed at $184.76 yesterday (Monday, 6th May).
However, the Tesla stock price is still far from what it was at the start of this year ($248.42). Tesla is conducting the 2024 Stockholders Meeting on 13th June. Therefore, the automaker is asking its shareholders to vote in favor of Elon Musk’s 2018 Performance Award.
In 2018, Tesla’s board of directors had set some ambitious goals for Elon Musk as the CEO of Tesla. These included increasing the market capitalization and revenue/earnings key milestones.
Elon Musk worked hard and was lucky enough to have achieved all of these milestones till now. If Tesla gained a market cap of $650 billion, Elon Musk’s pay package (stock options) would ideally reach around $55 billion.
Tesla (TSLA) became a trillion-dollar company in 2021 but later lost its market cap due to unexpected circumstances (force majeure). As of yesterday, Tesla has a market cap of $578.94 billion which is still considered an achieved milestone to receive his Performance Award.
Tesla’s Chair of the Board Robyn Denholm recorded a video message asking the company’s shareholders to vote in favor of Elon Musk as he has delivered phenomenal value for the company (watch below).
Tesla also has other proposals lined up for this year’s meeting that the automaker has listed in detail on the event’s dedicated website VoteTesla.com.
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