AutoBeta(AutoBeta.net)12/22 Report--

Tesla will suspend recruitment and make a new round of layoffs, according to several media reports on December 21. Tesla told employees that the company was suspending recruitment and confirmed that there would be another wave of layoffs in the first quarter of 2023, the report said.

So far, it is not clear whether Tesla's suspension of recruitment and the scope of layoffs involve the Chinese market. Tesla officials have not yet responded to the above reports. Or affected by the news, Tesla shares closed at a two-year low of $137.57 on Wednesday, while Tesla has fallen more than 60 per cent this year.

As mentioned above, if the above news is true, this will be another wave of layoffs for Tesla. Back in June, Tesla CEO Elon Musk issued an internal email saying the company needed to cut 10 per cent of jobs and suspend global hiring. Mr Musk gave the reason at the time: "I have a very bad feeling about the economy." However, at that time, a Tesla Chinese customer service staff replied to the media: "at present, we have not received any notice about layoffs and the suspension of recruitment." On June 21st, Tesla CEO Musk once again publicly said that the US economic recession was inevitable at some point. Tesla decided to reduce the number of fully paid employees by 10% in the next three months, but hoped to increase some temporary workers on hourly wages. The total number of employees will be reduced by 3% and 3.5%.

After that, Tesla China cancelled three online recruitment activities planned for June 16, 23 and 30, involving more than 1000 jobs, followed by media reports that Tesla's layoffs in China had been implemented by about 10 per cent, but the layoffs did not involve the manufacturing side.

According to the concern of the automobile industry, Tesla's public data show that since 2010, the size of Tesla's team has been expanding rapidly. From 2019 to 2021, the number of Tesla employees was 48016, 70757 and 99290 respectively. In 2021 alone, Tesla recruited 28533 employees worldwide, with a significant increase of 40.3%. The new jobs are mainly concentrated in Europe and China. As of the end of 2021, Tesla had 99290 employees worldwide, according to Tesla's annual financial statements filed with the Securities and Exchange Commission (SEC). In response to the recruitment suspension news, the report said that it is not clear how long Tesla's recruitment suspension will last, as Tesla still plans to expand in some manufacturing sites.

Data show that Tesla delivered 909000 new cars worldwide in the first three quarters, including 310000 in the first quarter, 255000 in the second quarter and 344000 in the third quarter. In the Chinese market, Model 3 delivered a total of 99000 vehicles in the first three quarters, down 11.4% from a year earlier. China, as Tesla's second largest market, plays a vital role in whether Tesla can achieve his annual sales target. In order to achieve the annual sales target as soon as possible, since October, Tesla has successively introduced subsidies and reduced the price of models in the Chinese market. Tesla's sales have increased significantly under several rounds of promotions. According to the latest data from the Federation of passengers, Tesla's wholesale sales in November were 100291, an increase of 89% over the same period last year, and a month-on-month increase of 40%, setting a new monthly delivery record. Tesla China expects that the output of the Shanghai factory this year may hit 750000 vehicles, that is, sales in December are still expected to reach about 100000. By the end of November, Tesla's Shanghai factory had delivered a total of 655069 new cars in the first 11 months of 2022.

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