Tesla has seen a drop in electric vehicle deliveries [File]
| Photo Credit: POOL

Tesla plans to lay off over 10% of its workforce, or roughly 14,000 employees, according to a report by tech outlet Electrek.

In a separate update, CEO Elon Musk, replied to a tweet on the departure of high level Tesla executives Drew Baglino, a former SVP of Powertrain and Energy, as well as Rohan Patel, who headed policy at Tesla, saying that “About every 5 years, we need to reorganize and streamline the company for the next phase of growth.”

Both executives posted messages confirming their departures on X, and spoke positively about Tesla’s vision for the future. Mr. Musk thanked them for their service.

The pioneering electric vehicle company is seeing a year-on-year decline in vehicle deliveries, even as Chinese EV companies grow in popularity and produce more vehicles. In America, rival car makers are also offering EV variants at lower prices.

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Tesla further blamed geopolitical factors for its performance in its quarterly update on April 2.

“Decline in volumes was partially due to the early phase of the production ramp of the updated Model 3 at our Fremont factory and factory shutdowns resulting from shipping diversions caused by the Red Sea conflict and an arson attack at Gigafactory Berlin,” said the company in a press release.

Tesla produced 433,371 units in total this quarter, and delivered 386,810. In the first quarter of last year, it delivered 422,875 vehicles, reported Bloomberg.