On April 16, Beijing time, last Sunday local time, Tesla CEO Elon Musk announced more than 10% of global layoffs, affecting more than 14,000 people. In this regard, foreign media have commented and expressed their views on this matter.
The following is a summary of comments from major foreign media:
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Financial Times: Not surprisingly, the Chinese market is particularly under pressure
The British “Financial Times” pointed out that China is the world's largest auto market and Tesla's second-largest market in terms of sales. Tesla faces particular pressure in the Chinese market. In China, competition between local electric carmakers and foreign automakers is heating up.
Regarding Tesla's layoffs, Craig Irwin, senior research analyst at investment bank Roth MKM, said that the news “is not surprising in itself.” “It's more of an acknowledgment that sales growth won't come back quickly,” he added.
New York Times: Musk is unpredictable
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The New York Times reported that just as Tesla faced intensifying competition and declining sales, the company announced it would lay off about 14,000 people. In addition, two senior Tesla executives announced their resignations. The management changes and layoffs are a reminder of Tesla CEO Elon Musk's unpredictability at a critical time for the company.
The New York Times also stated that Tesla’s sales decline also reflects the sluggish demand for the overall electric vehicle market in the United States. In the first quarter of this year, US electric vehicle sales were close to 269,000 units, a year-on-year increase of 2.6%, but a month-on-month decrease of 7.3%. Tesla's market share in the United States has also dropped from 62% in 2023 to 51% now.
BBC: Tesla’s growth encounters serious headwinds
Analysts at well-known research firm Gartner and wealth management firm Hargreaves Lansdown said the layoffs were a sign of cost pressures on Tesla as it invests in new models and artificial intelligence.
Regarding the departure of senior executives, Michael Ashley Schulman, chief investment officer of investment advisory firm Running Point Capital Advisors, said that their departure indicated that “Tesla has encountered serious resistance during its major growth phase.” He believes this is a “bigger negative signal” than announcing layoffs.
CNN: Layoffs once again prove that Tesla is suffering from competition
CNN pointed out that Tesla’s total number of employees has almost doubled since the end of 2020, and this layoff is just the latest example of the company being affected by increased competition and weak demand in the electric vehicle industry. CNN also stated that this is not the first time Tesla has laid off employees. The company laid off 7% of its employees in 2019 and another 10% of its fixed-salary employees in 2022.
Business Insider: Musk needs to explain layoffs to appease investors
According to the US “Business Insider” magazine, Dan Ives, a technology analyst at Wedbush Securities, believes that Musk needs to make a decision on the latest layoffs after Tesla has experienced several months of extremely difficult days. explanation so that investors can regain confidence.
Ives noted that Tesla could lose investor support if Musk can't explain what's going on and calm Wall Street's concerns. “Wall Street wants and needs answers on Tesla's first-quarter conference call next Tuesday (April 23) as a string of bad news over the past few months has investors fearful of Tesla's growth story,” he said. express.
Wall Street Journal: Adjusting to Market Demands
The Wall Street Journal stated that Tesla announced more than 10% of its layoffs and the resignation of two senior executives. This is an adjustment made by the company as demand for electric vehicles weakens. The article pointed out that as Tesla used price cuts to stimulate sales, its once-enviable profit margins have continued to decline in recent quarters.
TheVerge: Tesla faces double pressure
The Verge, an American technology blog, stated that Tesla’s layoffs coincided with the company being squeezed by dual pressures: one was the decline in demand for electric vehicles, and the other was the introduction of more affordable electric vehicles by Chinese manufacturers. In the fourth quarter of last year, Tesla lost the title of the world's largest pure electric vehicle manufacturer to BYD, but regained it in the first quarter of this year.