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Tesla’s Software and Service Team Faces Layoffs

Tesla has laid off employees from its software, services, and engineering departments.

According to sources citing insiders on Monday, Tesla has laid off employees from its software, services, and engineering departments. According to Electrek, employees of the car manufacturer received emails over the weekend, which were part of a broader layoff. The news caused Tesla’s stock to rise by over 1%, but the company did not immediately respond to requests for comment.

Earlier, Tesla announced last month that it would be cutting over 10% of its workforce globally, and the electric car charging department of the company led by Elon Musk has been disbanded. Tesla disclosed in a notice last month that it would be laying off over 6,700 people in Texas, California, Nevada, and New York. Tesla also disclosed last month that it expects the second quarter to incur costs of over $350 million for the mass layoffs. The layoffs also include a significant number of executive departures, including Drew Baglino, Rohan Patel, Rebecca Tinucci, and He Zhiqiang.

Due to rising interest rates slowing down the adoption of electric vehicles, Tesla has been facing pressure from declining sales and intensifying price wars among car manufacturers.

Analysts suggest that Tesla aims to focus on autonomous driving software, robotaxis, and humanoid robots, with Musk likely cutting expenses from certain teams to preserve cash for these projects. In April of this year, the company stated that it is developing “new models” that will utilize its existing platforms and production lines—this move is expected to better control the company’s capital expenditure.


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