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Tesla's layoff plan in China has been implemented by about 10 per cent, but it does not involve the manufacturing side, according to Phoenix New Media Technology. Many netizens also revealed on the pulse social networking platform that colleagues who knew about the delivery of jobs had been laid off, and some netizens exposed that the compensation plan was Never3, but some netizens pointed out that the compensation for Ninten3 varied from person to person, and some colleagues were directly persuaded to quit without compensation. In addition, a person familiar with the matter disclosed to the media: this is part of Tesla's global layoff plan. At present, in addition to manufacturing, many functional departments have laid off staff. Tesla China has not yet responded to the information about layoffs.

It is worth mentioning that this month Tesla China cancelled three online recruitment events scheduled for June 16, 23 and 30 for an unexplained reason. It is understood that the three recruitment activities involved positions such as sales, R & D and supply chain. In early June, an email sent to company executives by Tesla CEO Musk came to light, saying that Tesla needed to "cut about 10 per cent of jobs". On June 21, Tesla CEO Musk once again publicly said: the US economic recession is inevitable at some point. Tesla has decided to reduce the number of fully paid employees by 10% in the next three months, but hopes to increase some hourly temporary workers. The total number of employees will be reduced by 3% to 3.5%.

Recently, Tesla has been repeatedly exposed to layoffs. On June 13, according to several media reports, Tesla has fired Christopher Bousigues, the regional manager in Singapore. Meanwhile, in an internal memo from Tesla, Mr Musk asked "employees to redouble their efforts". Musk said the second quarter of 2022 was a "very difficult quarter" for Tesla because of supply chain shortages, so he called on employees to work harder to help the company get back on track. In fact, with regard to Musk's view of the "bad economy", he has repeatedly expressed his concern about the future global economic situation, especially the outlook for the US economy. At the end of 2021, Musk said on Twitter that if history can be used for reference, then most people will not be able to survive the next recession, which will come in the spring or summer of 2022 or no later than 2023 at the latest.

In addition to layoffs in China, Tesla also carried out a round of layoffs in the United States. Earlier, according to media reports, Tesla was sued by employees, saying that his massive layoffs violated federal law because the company did not provide advance notice of layoffs. The laid-off employee said: in June, Tesla fired at his Tesla factory in Nevada, which laid off more than 500 employees.

Tesla's global layoffs may be related to the cost pressure caused by the shortage of the supply chain. In March this year, at Tesla's 2021 shareholders' meeting, Musk pointed out that Tesla's supply chain is facing huge cost pressure. In addition, recently, due to the impact of the epidemic in Shanghai, Tesla's Shanghai factory has stopped production many times. Tesla's April sales were also hit hard. According to relevant data, Tesla sold 1512 vehicles in April, down 94.15% from the same period last year and 97.70% from the previous month. Although Tesla's sales in China rebounded in May, it will take some time to return to pre-epidemic levels. According to the latest data, Tesla sold 32165 vehicles wholesale in China in May, including 22340 for export and 9825 for domestic retail. Tesla sold a total of 215851 vehicles in China from January to May this year.

Tesla Shanghai Factory, as one of Tesla's most important automobile production bases, mainly produces Model 3 and SUV Model Y cars. For the whole of 2021, Tesla Shanghai factory delivered 484000 vehicles, an increase of 235% over the same period last year, accounting for 51.7% of Tesla's total global delivery volume. In the Chinese market, there will be 169853 Model Y retail vehicles and 150890 Model 3 retail vehicles in 2021. Compared with Tesla's global delivery volume of 936000 vehicles in 2021 and 484000 vehicles delivered by the Shanghai factory, Tesla accounts for more than half of Tesla's global sales. According to Tesla's latest data, Tesla delivered 310048 cars in the first quarter, an increase of 68% over the same period last year, of which Tesla Shanghai Super Factory delivered 182174 (59846 in January, 56515 in February and 65814 in March). It accounts for 58.76% of Tesla's total global market share. For Tesla's delivery volume in the second quarter, it is expected or lower than the first quarter, there may be a month-on-month decline in delivery for the first time in more than two years. Judging from Tesla's delivery volume in China in April, it is not difficult to see the losses caused by the Shanghai epidemic to Tesla China.

Tesla Musk also revealed in a recent interview that the company's new car plants in Texas and Berlin are struggling to increase production and are "losing billions of dollars" due to battery shortages and logistics problems. In addition, it said, "the past two years have been an absolute nightmare of supply chain disruptions, one after another, and we have not yet got rid of this situation." At present, Tesla is most concerned about "how can we keep the factory running so that we can pay our employees without going bankrupt?"

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