Tesla Reportedly Comes With a Round of Layoffs and a Hiring Freeze

Tesla will lay off some of its staff early next year. The American site Electrek, which has close contacts with the company, reports this based on insiders. The manufacturer of electric cars has already announced a hiring freeze.

 

Tesla also held a round of layoffs in June. Then Elon Musk asked top executives to lay off 10 percent of the workforce. One of the reasons he gave for this was that he had a bad feeling about the economy. In messages on Twitter, Musk has recently warned several times that the Federal Reserve is killing the economy by raising interest rates to fight inflation.

Tesla has to contend with declining demand for its expensive electric cars, partly due to high inflation. But the company also suffers from increased competition as more traditional automakers launch electric models. Other new car manufacturers are also coming onto the market with their first models, such as Lucid and Rivian. In addition, Chinese companies such as BYD, MG, Nio and Aiways are trying to gain a foothold in Europe and the United States.

The hiring freeze is striking because Tesla still needs thousands of employees for factories in Germany and the US, writes Electrek. However, it is still unclear how long the vacancy freeze will last.