Tesla has announced some plans to remove over 10% of its entire global workforce, including the removal of two key executives. This is because of consumer interest. These new updates come as Tesla is set to become more flexible to a softer market demand for its environmentally friendly cars.
CEO Elon Musk had to notify his staff about his plans of job cuts. He spoke about the need to be much more cost effective and produce much more profits. Shortly after, Drew Baglino, a long-time executive, said goodbye to Tesla. He has been an efficient and influential part of the company.
Rohan Patel, who was responsible for policy and business development is another important Tesla figure. He also left the electric Vehicle (EV) company. This is also a huge loss for the leadership team of Tesla.While only last year, Zach Kirkhorn who was the CFO exited the company.
After the announcements of these recent ex-employees, Tesla stocks dropped. This drop showed the minds of the investors about these new updates to the company especially in the recent wave on EVs in the country. Musk, however, implied that these changes are normal in any company.
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“About every 5 years, we need to reorganize and streamline the company for the next phase of growth,” Musk said on X. As the EV market grows, Tesla is moving towards building software for driver assistance, particularly its “Full Self-Driving” technology.
Tesla has always wanted to be at the front of autonomous driving technology and this software will be a big push in that direction. The “robotaxi” project seems to be what the employees of Tesla have made for their front project as directed by the company’s leadership. Despite the way the EV market has been, Tesla still remains one of the largest EV employers.
Since the decline of the last quarter of 2020, there have been some major concerns over the general performance of the company which may be a pointer to challenges the company has been facing still. Meanwhile, their Chinese competitors are gaining some traction.
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Analysts are saying that there is no clarity in Tesla’s strategy, especially regarding the development of a lower-cost model which is important for increasing its market share.
In China, Tesla faces stiff competition, as its market shares have been shaking in recent quarters. The company has urged its Chinese managers to prioritize important roles.
In the midst of all these, Musk has stayed very excited about Tesla’s role in the future of electric cars and artificial intelligence. The Company is a typical example of the nature of businesses. One day, they are soaring and another, they are struggling.
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Baglino’s departure, together with some other executives, seems to show that there are challenges faced by Tesla to retain top workers especially in this troubling market. Although many people say this is very strong for the company, the success of this would be because Tesla was able to face these market challenges.
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