According to Phoenix News, Tesla issued a letter to all employees at noon on the 15th Beijing time, announcing that Tesla will lay off 10% of its global employees. According to a document submitted to regulators in December last year, Tesla has more than 140,000 employees worldwide.

Earlier, foreign media reported that some employees said the number of layoffs could be as high as 20%.

According to Reuters, Tesla's Gigafactory in Texas, USA, recently told employees that the company will shorten the production shifts of Cybertruck, and several employees said that Tesla is preparing for a round of layoffs this week.

Some of the employees said the layoffs could be as high as 20%, meaning tens of thousands of people would be affected. The rumors came after Tesla angered some employees earlier this year by delaying performance reviews.

Tesla's sales plummeted in Q1 2024, which is also seen as one of the main reasons for the layoffs.

Data shows that Tesla delivered a total of 386,800 vehicles in the global market in Q1 2024, down 8.5% year-on-year and 20.2% month-on-month, hitting a new low in the past five quarters. It is also the first time that Tesla's quarterly sales have fallen below the 400,000 mark since Q3 2022. At the same time, Tesla's car inventory has increased to 46,000 vehicles.

Affected by the delivery data, Tesla's stock price once fell by nearly 7%. Since the beginning of this year, Tesla's market value has evaporated by more than $200 billion. In the first quarter, Tesla's stock price fell by 29%, the largest quarterly decline since its IPO in 2010.

Tesla is expected to reduce production to address high inventory and lower demand. In March, Tesla reduced production at its most efficient Shanghai Gigafactory.

Tesla CEO Elon Musk has previously blamed high inventory problems on pricing and high interest rates, and recently he has also expressed concerns about the global economy, slowing down Tesla's project to build a factory in Mexico.