Elon Musk Acknowledges Error In Tesla Severance Packages, Says...

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New Delhi: In an internal email sent on Wednesday, April 18, 2024, Tesla CEO Elon Musk addressed an error in severance packages sent to laid-off employees this week. Musk apologized for the mistake and assured immediate correction.

Severance Package Error

Musk acknowledged that some severance packages were incorrectly low due to a reorganization within Tesla. He apologized for the oversight and assured employees that the issue was being promptly rectified. ()

Cost-Cutting Measures And Workforce Reduction

Tesla implemented layoffs affecting around 10 percent of its global workforce last year in response to declining sales. ()

With 140,000 employees by the end of 2023, the company faced challenges of role duplication and organizational inefficiencies, prompting the need for restructuring.

Strategic Planning

Musk emphasized the importance of revamping the company, preparing for future phases, and strategizing for the future. Despite challenges, Tesla remains committed to its vision of achieving a sustainable global energy economy through electrification and sustainable energy solutions.

Financial Performance

Tesla shares have experienced a 37 percent drop this year, reflecting a decline in sales of approximately 20 percent last year. First-quarter deliveries also decreased by 8.5 percent year over year, marking the first decline since 2020.

Focus Area

While addressing current challenges, Tesla continues to focus on innovation, including the development of the Robotaxi.