Tesla Cuts 14,000 Jobs as Sales Stumble

The disappointing start to the year comes as the company promotes its automated and autonomous driving efforts

Graham Hope

April 16, 2024

3 Min Read
The Tesla logo is displayed at a Tesla dealership on April 15, 2024 in Austin, Texas.
Brandon Bell/Getty Images

Amid slowing demand for electric cars generally, Tesla has suffered a disappointing start to the year.

Tesla is laying off more than 10% of its workforce globally.

Around 14,000 people are losing their jobs after a difficult start to 2024 for the electric vehicle (EV) manufacturer.

The news was confirmed in a leaked company-wide email sent by CEO Elon Musk, and subsequently confirmed in a post on X.

In the email, Musk explained: “Over the years, we have grown rapidly with multiple factories scaling around the globe. With this rapid growth, there has been duplication of roles and job functions in certain areas. 

“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. 

“As part of this effort, we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally. 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.”

And he added: “For those remaining, I would like to thank you in advance for the difficult job that remains ahead. We are developing some of the most revolutionary technologies in auto, energy and artificial intelligence. As we prepare the company for the next phase of growth, your resolve will make a huge difference in getting us there.”

Related:Tesla Issues Sales Warning Amid Arrival of Latest Full Self-Driving Version


Among those departing in the cull are senior executives Drew Baglino, senior vice president of powertrain and energy, and vice president for public policy, Rohan Patel.

Amid slowing demand for electric cars generally, Tesla has suffered a disappointing start to the year.

Deliveries in the first quarter fell to 386,810, which constitutes a drop of 8% year on year and 20% from the previous quarter. This followed a warning over slower sales growth in 2024 that was issued in January.

Amid this landscape, Tesla has, in recent weeks, made several moves to promote its efforts in the area of automated and autonomous driving, which Musk has frequently said is key to the value of the company.

In March, he decreed that all compatible Teslas bought in the United States should come with free access to its Level 2  Full Self-Driving (FSD) software for a month-long trial. He also instructed staff to take potential new customers on test rides to showcase the tech. “Almost no one actually realizes how well (supervised) FSD actually works,” he explained.

This was followed by the slashing of the FSD subscription price to $99 a month (from $199 a month) in early April – another initiative clearly designed to increase uptake.

Related:Musk Orders Full Self-Driving Demos for All New Teslas

And wedged in between these announcements was the confirmation that Tesla will unveil a self-driving taxi in August.

About the Author(s)

Graham Hope

Graham Hope has worked in automotive journalism in the U.K. for 26 years, including spells as editor of leading consumer news website and weekly Auto Express and respected buying guide CarBuyer.

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