Published: Feb. 7, 2024 at 1:38 p.m. ET
Tesla Inc. managers in the U.S. have reportedly been asked to identify critical positions among their employees, sparking concerns that the electric-car manufacturer is contemplating layoffs. According to a report from Bloomberg, which cites sources familiar with the matter, Tesla TSLA asked its managers to provide a one-line response for each job after canceling some employees’ performance reviews. The company did not respond to a request for comment.
Tesla revealed in a December regulatory filing that it had 140,473 employees globally. It stated that it had 127,855 workers as of December 2022, representing an increase of approximately 29,000 employees from the previous year.
Last month, Tesla reported quarterly earnings that disappointed Wall Street. Investors were dissatisfied with the lack of clarity in its outlook, which suggested potential slower growth this year compared to 2023.
Demand for electric vehicles has cooled in recent months, leading carmakers to scale back some of their investments in the sector.
Tesla investors have been particularly concerned about the impact of numerous price cuts on profit margins, and the fact that the company will only refresh its lineup next year at the earliest with the launch of a mass-market EV known as the “Model 2.”
Tesla shares rose by over 2% on Wednesday, but have fallen by more than 24% so far this year, in contrast to a 5% gain for the S&P index.SPX. The stock has declined by nearly 5% in the last 12 months, whereas the broader equity index has seen a 20% gain.
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