Tesla to incur $350m in layoff expenses in Q2

Tesla anticipates incurring over $350 million in expenses during the second quarter due to the recent large-scale layoffs it initiated, according to Reuters citing a regulatory filing on Wednesday.

The electric vehicle manufacturer also reaffirmed its projection of capital expenditure surpassing $10 billion for 2024, ranging between $8 billion and $10 billion annually thereafter.

This disclosure comes in the wake of Tesla’s earnings report on Tuesday, during which it announced plans to introduce “new models” by early 2025 utilising existing platforms and production lines, stepping back from previous ambitious endeavors to develop an entirely new model with an estimated cost of $25,000.

Last week, an internal memo obtained by Reuters indicated that Tesla was reducing its global workforce by more than 10 per cent amid challenges such as declining sales and heightened competition in the electric vehicle market.