On April 15th, Musk released a company-wide memo stating that Tesla would be reducing its workforce by 10% globally, confirming market speculations.

According to the contents of the memo released by tech blogger "zhuyulong-YL," Musk expressed in the memo:

"Over the years, we have grown rapidly with multiple factoriesscaling around the globe. With this rapid growth there has beenduplication of roles and job functions in certain areas. As weprepare the company for our next phase of growth, it isextremely important to look at every aspect of the company forcost reductions and increasing productivity.

As part of this effort, we have done a thorough review of theorganization and made the difficult decision to reduce ourheadcount by more than 10% globally. There is nothing I hatemore, but it must be done. This will enable us to be lean,innovative and hungry for the next growth phase cycle.

would like to thank everyone who is departing Tesla for theirhard work over the years. l'm deeply grateful foryour many contributions to our mission and we wish you well inyour future opportunities. lt is very difficult to say goodbye.

For those remaining, l would like to thank you in advance forthe difficult job that remains ahead. We are developing some ofthe most revolutionary technologies in auto, energy and artificialintelligence. As we prepare the company for the next phase ofgrowth, your resolve will make a huge difference in getting us there."

Previously, media had reported that a round of layoffs at Tesla was imminent. Some insiders revealed that the company had not formally notified the layoffs, with some employees hearing that the layoffs would begin as early as Sunday (April 14th). Some employees also told the media that they had not heard about the layoffs or were not concerned about the rumors. In addition, some media outlets cited insiders as saying that some employees speculated the layoffs could be as high as 20%, meaning the potential layoffs could affect tens of thousands of employees.

Earlier this month, Tesla released its production and delivery data for the first quarter of 2024: a total of 386,810 vehicles delivered, a drastic 8.5% year-on-year decline. Analysts had an average expectation of Tesla delivering about 457,000 vehicles, with forecasts ranging from 414,000 to 511,000 vehicles. The actual sales volume fell short of even the lowest standard, bringing Tesla's performance back to the level of the second half of 2022.

Additionally, Tesla announced it would shorten the production shifts for the Cybertruck. Currently, delivery of the new model is no longer subject to waiting as demand has been weak. A major issue with the Cybertruck's reception is that if Tesla remains firm on no longer producing affordable sedan models, there will be no new Tesla models until at least 2026. Musk's options seem limited to what he currently has in hand.

For the market and shareholders, they still hold high hopes for Musk's envisioned fully autonomous taxi.

Following the release of the company-wide memo, the market began to focus on Tesla's stock price. Tesla's stock price has nearly bottomed in the S&P 500 index since the beginning of this year, with a decline of over 30%.

In 2022, Tesla had previously cut approximately 10% of its workforce. Musk had sent an email to company executives announcing a halt to all global recruiting, stating that due to gloomy economic prospects, Tesla needed to cut approximately 10% of its workforce while increasing the number of hourly workers. Musk later revealed in subsequent emails that this layoff did not apply to any employees actually producing cars, battery packs, or installing solar products.

Robert W. Baird analyst Ben Kallo stated that following the unexpected decline in sales in the first quarter of 2024, Tesla's sales in the second quarter might decline again. Kallo wrote in his research report that Tesla still faces the problem of a relatively high base number this quarter. He predicts Tesla's second-quarter deliveries to be 444,510 vehicles, a 4.6% decrease from the same period last year. "There is no denying that the demand environment has changed," Kallo said. Regarding Musk's announcement of launching a fully autonomous taxi on August 8th, Kallo believes that, based on past experience, this news could boost Tesla's stock price.