Tesla reportedly to cut more than 6,000 jobs in Texas, California; automaker's profit slumps 55% in Q1 results

Automaker Tesla on Tuesday said that it would lay off 6,020 employees in Texas and California, as per a Reuters report. The development came before Tesla reported its Q1 earnings on Tuesday, which were below Wall Street expectations as the automaker's net income slump by 55 per cent.  

Some numbers were disclosed in notices to the states of Texas and California on Monday under a U.S. labor law that requires companies with 100 or more employees to notify 60 days ahead of planned closings or mass layoffs.

Tesla will cut 3,332 jobs in California and eliminate 2,688 positions in Texas, starting June 14, the notices showed.

"Tesla has now created over 30,000 manufacturing jobs in California!" Musk said in a post on his social media platform X on Tuesday.

Last week, Tesla announced a more than 10 per cent cut in its global workforce under pressure from dropping sales and an intensifying price war among EV makers, without revealing the number of employees the job cuts would impact.

Tesla also said on Tuesday that it would introduce "new models" by early 2025, using its current platforms and production lines as it retreated from more ambitious plans to produce an all-new model that had been expected to cost $25,000.

Tesla reports Q1 earnings 

Tesla’s reported a 55 per cent fall in its net profit in the first quarter ended March 2024. The profit fell to $1.13 billion from $2.51 billion a year earlier. 

The EV manufacturer’ revenues for the quarter ended March slipped by nine per cent to $21.3 billion from $23.33 billion YoY.

The company said that its EV sales was “under pressure." Analysts had estimated revenues to be $22.15 billion, according to LSEG data.

Tesla reports 

Tesla shares closed up by 1.85 per cent, or $2.63, at $114.68 each at NASDAQ on Tuesday.

(With inputs from Reuters)