Tesla has announced layoffs affecting "more than 10%" of its global workforce in an internal email, confirming our previous exclusive report on the looming workforce reduction. Over recent months, signs of impending layoffs were evident as Tesla instructed managers to identify critical team members, paused some stock rewards, and scaled back production at Gigafactory Shanghai. The anticipation of layoffs intensified over the weekend with rumors suggesting reductions could reach as high as 20%.

Concurrently, speculation arose regarding shortened Cybertruck production shifts at Gigafactory Texas. While precise figures are undisclosed, the layoffs are expected to affect at least 14,000 employees, signaling a significant adjustment for Tesla, whose headcount has not experienced the rapid growth seen in previous years. The news of layoffs follows a challenging quarterly delivery report, where Tesla faced significant misses in delivery estimates and witnessed a rare year-over-year sales decline. Analysts remain optimistic about Tesla's profitability in the upcoming quarterly report, despite these challenges.