According to Bloomberg, Tesla’s layoffs in China are increasing, according to people familiar with the matter.
Meanwhile, Musk, chief executive of Tesla, is under increasing pressure to win back his share in the world’s largest car market.
Tesla began a new round of layoffs earlier this week, extending the layoffs planned in mid-April, according to people familiar with the matter.
Earlier, Tesla announced that he would cut more than 10 per cent of jobs worldwide, and a new round of layoffs was part of the plan.
The latest layoffs affect a range of departments at Tesla’s Shanghai plant, including customer service staff, engineers, production line workers and logistics teams, according to people familiar with the matter.
People familiar with the matter added that Tesla’s layoffs last month had a more direct impact on sales representatives.
According to one of the people familiar with the matter, most of Tesla’s laid-off employees in China will receive corresponding compensation (equivalent to one month’s salary for each year of work), as well as three months’ extra salary.
Some employees left the workplace accompanied by the manager, while others left by shuttle bus.
It is not clear how many employees Tesla will be affected by the incident, or how it will affect Tesla’s business in China.
Tesla’s representative in China didn’t immediately respond to a request for comment.
Photo: Tesla, the Shanghai factory accounts for more than half of Tesla’s global output.
Tesla’s wholesale sales in China were about 62200 vehicles in April, down nearly 18 per cent from a year earlier and down more than 30 per cent from a month earlier, according to data released by the Federation of passengers on May 7.
Tesla’s market share in china shrank to about 7.
5% in the first quarter of 2024 from 10.
5% in the same period last year, according to Bloomberg calculations.
It follows reports that people familiar with the matter have revealed that Zhu Xiaotong (Tom Zhu), the “second-in-command of Tesla”, will return to China to return as vice president of the China region.
It is reported that Zhu Xiaotong has always been the leader of Tesla’s business in China and led the Shanghai Super Factory project.
In order to replicate the success of the Shanghai factory in Texas, Musk put Zhu Xiaotong in charge of all Tesla’s super factories at the end of 2022.
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