Tesla to cut 601 jobs in Bay Area, a sign of more problems for EV maker

FREMOScenes at the Tesla car factory in 2015
An assembly line at Tesla’s plant in Fremont, Calif., in 2015.
(David Butow / For The Times)

In the fourth straight week of layoff announcements, Tesla said it is now concentrating on reducing staff at its Bay Area facilities as part of a larger move to cut jobs globally.

State filings show that Tesla is planning to lay off 378 employees at its Fremont facilities and 223 at its Palo Alto offices.

The layoffs will occur over a 14-day period starting June 20.

An email to Tesla officials requesting comment was not immediately returned.

The layoffs come as the company struggles with flagging sales, top executives fleeing, a declining stock price and quality problems with the new Cybertruck. The low-cost Model 2 recently promised by Chief Executive Elon Musk also appears to be dead.


It is not immediately clear which positions are being cut. The San Francisco Chronicle reported they would include technicians, electricians, software engineers, plumbers and athletic trainers.

The drive to electrify personal cars in California has, at best, hit a rough patch. The big question is whether current conditions will turn out to be growing pains.

April 16, 2024

On April 15, Musk announced in an email to staff that Tesla was cutting more than 10% of its workforce, citing job overlap and the need to reduce costs.

A week later, Telsa said it was laying off 3,332 workers at its facilities and offices in Fremont, Palo Alto, Burbank and Lathrop.

Including the latest cuts, Telsa has announced 3,933 layoffs this year in California.

“As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity,” Musk wrote in the April email.

“As part of this effort, we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally,” he continued. “There is nothing I hate more, but it must be done.”