Tesla Inc. is reportedly assessing the criticality of its employees' positions, leading to concerns that the electric automaker may initiate layoffs. The company recently sent out a concise query to its managers in the U.S., requesting information on the significance of each job role. However, Tesla has yet to comment on the matter.
As per a Bloomberg report, the job inquiry occurred after Tesla canceled performance reviews for certain employees. In December 2022, Tesla disclosed in a regulatory filing that it had a workforce of 127,855 individuals, a remarkable increase of approximately 29,000 from the previous year.
The announcement of Tesla's less optimistic outlook during its latest quarterly earnings report disappointed Wall Street investors. The lack of clarity surrounding its future growth, which is anticipated to be slower this year compared to 2023, raised concerns among shareholders.
In recent months, the demand for electric vehicles has cooled, prompting several car manufacturers to curtail investments in the industry. Particularly worrisome for Tesla investors have been the company's reduction in prices, which subsequently impacts profit margins, and the delayed refreshment of its lineup until next year. The highly anticipated launch of the mass-market electric vehicle, known as the "Model 2," is scheduled for next year.
Although Tesla shares experienced a modest gain of more than 2% on Wednesday, they have undergone a significant decline of over 24% year-to-date. In contrast, the S&P index has seen gains of about 5%. Furthermore, Tesla's stock performance over the past 12 months reflects a loss of nearly 5% compared to a 20% gain for the broader equity index.
As Elon Musk contemplates moving Tesla out of Delaware, it remains to be seen whether this decision will cause concern among investors.