Musk to reorganize Tesla as Revenue drops by 9%
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New Delhi: As Tesla, the electric car company, registered $1.1 billion in net income and $21 billion in revenue, a 9 percent decline from the year-to-year period's $23.3 billion, Elon Musk said that it is time to reorganize Tesla. He mentioned that laying off over 10 percent of its workforce was necessary for the company's next phase of growth, IANS reported.
“EV adoption rate globally is under pressure and a lot of other auto manufacturers are pulling back on EVs and pursuing plug-in hybrids instead,” Musk told analysts over the earnings call.
“We believe this is not the right strategy. And electric vehicles will ultimately dominate the market,” the billionaire added.
In the shareholder note, Tesla said it’s focused on leveraging its existing manufacturing footprint to introduce new and more affordable products. The company said that it has “updated future vehicle line-up to accelerate the launch of new models ahead of our previously communicated start of production in the second half of 2025”.
Musk said the company will showcase its purpose-built robotaxi or Cybercab in August. “Regarding AI computing, over the past few months, we’ve been actively working on expanding Tesla’s core AI infrastructure. For a while there, we were training constrained in our progress,” he told analysts.