US electric vehicle (EV) giant Tesla announced on the 24th that it expects to record more than $350 million in costs in the second quarter of 2024 due to large-scale layoffs that began last week. Photographed in October 2018 (2024 Reuters/Lucy Nicholson)
Tesla has decided to lay off about 10% of its employees worldwide. The company says it is preparing for the “next stage of growth” by cutting costs and improving productivity. The focus will shift to launching more affordable models by early 2025.
Tesla said on the 23rd that it will introduce several “new models” using its current platform and production lines. This will allow the company to more efficiently manage capital expenditures during “times of uncertainty.”
Analysts expect Tesla to post a profit of $2.24 billion in the second quarter, according to LSEG data. Although this is lower than the same period last year, it is expected to exceed the first quarter’s $1.59 billion, which was the lowest level in about three years.
Demand for electric vehicles has slowed over the past year as rising interest rates have caused consumers to reconsider purchasing big-ticket items.
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