Hey everybody, checking back to the Elon Musk podcast, this is a show where we. Discuss the critical. Crossroads, the Shape, SpaceX, Tesla X, The Boring Company, and Neuralink, and I'm your host Will Walden. One more thing before we start Google Podcasts is being discontinued by Google. So if you want to continue getting episodes of the Elon Musk podcast, please check us out over at YouTube Music. Search us out over there and that's where you'll be able to find our our podcast through
Google products. Thank you so much for understanding. I had no control. Over this. Google pulled the Google Podcast app off of Android, and I want to let you know where to continue finding the show Over at YouTube Music Search for Elon Musk podcast Tesla is set to reduce its workforce significantly in both Texas and in California, and it'll impact over 6000 employees as the company navigates through a challenging phase of slowing demand and decreased profit
margins. Now this announcements preceded the electric vehicle manufacturers. Quarterly Financial. Results during which CEO Elon Musk presented a strategic plan for the company for the next year. Now, the job reductions will affect approximately 2688 employees at the Tesla factory in Austin, TX and 3332 employees in California. These layoffs are scheduled to commence on June 14th.
According to recent disclosures made to the respective state governments under the Worker Adjustment and Retraining Notification Act, or the Warren Act. This workforce reduction is part of a larger effort by Tesla to streamline their operations amid a downturn in sales and a competitive pricing environment in the electric vehicle market. The total reduction represents more than 10% of Tesla's global
workforce. The decision influenced by the current economic pressures on the EV industry a Tesla's shares showed some resilience in the stock market, gaining about 2% as investors awaited the quarterly financial report. This uptick in share price comes after a week long decline that saw the company's stock value drop by 19% in Texas. The layoffs account for 12% of Tesla's workforce in the greater
Austin area. The region is significant for Tesla as it houses one of its Gigafactories and services the company's headquarters. Tesla plans to cut 285 jobs at Buffalo, NY, which is integral to its Autopilot software and fast charging technology. And Tesla's employment levels saw a sharp increase from about 100,000 at the end of 2021 to over 140,000 by the end of last year, reflecting significant growth before this recent contraction.
Now in an exclusive report earlier this month, Reuters highlighted Tesla's decision to cancel a long-awaited affordable car model, which was anticipated to be a major driver of broader market adoption due to his $25,000 price tag. Tesla's model lineup has aged and with rising interest rates affecting consumer spending, company faces stiff competition from other manufacturers, especially in China.
This is exacerbated by the growing consumer preference for less expensive gasoline hybrid vehicles, which offer a greater driving range now. Elon Musk recently posted on X about Tesla's contribution to job creation in California, stating Tesla has now created over 30,000 manufacturing jobs in California. Now. This statement came amidst the broader context of job cuts and financial adjustments within the company.
And the job cuts extend across various segments of Tesla's operations in California, including the vehicle assembly plant in Fremont and its engineering headquarters in Palo Alto. Others affected areas include Burbank and Lathrop, where Tesla manufacturers parts and battery
systems. An internal memo last week must told employees that the layoffs were necessary as part of preparation for Tesla's next growth phase, which involves scrutinizing all company aspects for potential cost reductions
and productivity increases. And the economic pressures are not only seeing in Tesla's restructuring, but also in a Strategic product decisions Company recently recalled thousands of cyber trucks doing an issue with an accelerator pedal, adding to the challenges faced during this period. Now, despite the layoffs and recent product issues, Tesla's management remains optimistic about the future.
On this earning call, Elon Musk discuss new strategies that can include accelerating production timelines for his more affordable EV models. And Tesla's operational challenges and changes of the workforce reductions reflect its efforts to stabilize financially and maintain its competitive edge in the rapidly growing EV market. As Tesla continues to adapt the industry.
And as Tesla moves forward with these job cuts reaffirms, its commitment to streamlining the operations and focus on strategic growth areas Now includes investments in new manufacturing technologies and production facilities, which are crucial for maintaining its lead in the EV market. But they're also focusing heavy on AI in the future, Elon Musk has said. If you think Tesla is just a car manufacturer, you are completely wrong. They're an AI company, but they make automobiles.
The coming days will be crucial for Tesla, though, as the market response to its quarterly results and strategic announcements could dictate the company's trajectory in the near term. Investors and industry analysts are keen to understand how Tesla plans to navigate its current challenges. And since Tesla is undergoing this restructuring and it's affecting thousands of employees in key locations across the country, aims to enhance efficiency and combat market challenges.
The outcome of these changes will likely play a crucial role in shapings Tesla's path forward in next year. Hey, thank you so much for listening today. I really do appreciate your support. If you could take a second and hit the subscribe or the follow button on whatever podcast platform that you're listening on right now, I greatly appreciate it. It helps out the show tremendously and you'll never
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