Elon Musk set to lay off nearly 2700 employees at Tesla’s Texas gigafactory

Elon Musk is set to lay off nearly 2700 employees at Tesla’s giga-factory in Texas, the company confirmed in a Worker Adjustment and Retraining Notification (WARN) notice.
A WARN Act requires a company with 100 or more employees to notify 60 days ahead of planned layoffs.
The news comes as Tesla’s sales continue to plunge, its stocks lose 43 percent of value in 2024, and the Cybertruck recall hurts the company’s reputation.
This comes after Tesla announced it will be laying off 10 percent of its global workforce.
Tesla’s layoffs come as the company drops prices for some of its models in the US, China, and Germany.
READ MORE: Tesla’s stock in ‘no man’s land’ as Cybertruck crisis brings Musk to new low
The cuts reduced the starting price for a Model Y to $42,990, $72,990 for a Model S, and $77,990 for a Model X.
Tesla has also had to recall thousands of its Cybertrucks after a fault was discovered with the accelerator pedal.
Musk said on X after the news broke that the company was being “cautious” as it recalled the vehicles.
In other news, Musk is also pushing for Tesla shareholders to approve his $56 billion pay package after a court in Delaware rejected it.
Musk has moved Tesla’s legal home to Texas in protest against the decision. The string of troubling headlines has coincided with a poor performance in the stock market.
Tesla has seen its stock drop nearly 43 percent this year. They now sit at $142.05, a 15-month low.
It was also reported on Tuesday that Toyota’s market value is closing in on Tesla’s, and could see the Japanese manufacturer pass Musk’s company soon.
Tesla’s advantage over Toyota narrowed to about $83 billion before the start of regular US trading Tuesday
Tesla’s market value lead over Toyota peaked at $939 billion in early November 2021.