Foreign media are hotly discussing Tesla layoffs: The Chinese market is under great pressure and Musk is unpredictable

On April 16, Beijing time, last Sunday local time, Tesla CEO Elon Musk announced more than 10% of global layoffs, affecting more than 1.4 million people. In this regard, foreign media have commented and expressed their views on this matter.

The following is a summary of comments from major foreign media:

Financial Times: Not surprisingly, the Chinese market is under particularly great pressure

According to the British "Financial Times", China is the world's largest auto market and Tesla's second-largest market in terms of sales. Tesla faces particular pressure in the Chinese market. Competition between local electric carmakers and foreign automakers is heating up in China.

For Tesla members, Craig Irwin, senior research analyst at investment bank Roth MKM, said the news was "not a surprise in itself." He added: "This is more like an admission that sales growth will not recover quickly."

New York Times: Musk is unpredictable

US "New York Times" It said that just as Tesla faced increasing competition and declining sales, the company announced that it would lay off approximately 14,000 people. In addition, two senior Tesla executives announced their resignations. The management changes and layoffs are a reminder of Tesla CEO Elon Musk's unpredictability at a critical time for the company.

The New York Times also stated that Tesla’s decline in sales also reflects the sluggish demand in the overall electric vehicle market in the United States. In the first quarter of this year, U.S. electric vehicle sales were close to 269,000 units, a year-on-year increase of 2.6%, but a quarter-on-quarter decrease of 7.3%. Tesla’s U.S. market share has also dropped from 62% in 2023 to 51% now.

BBC: Tesla’s growth has encountered serious obstacles

Analysts from well-known research firm Gartner and wealth management firm Hargreaves Lansdown said that as Tesla invests in new Models and artificial intelligence, layoffs are a manifestation of the company's cost pressure.

Regarding the departure of senior executives, Michael Ashley Schulman, chief investment officer of investment advisory firm Running Point Capital Advisors, said that their departures indicate "a significant growth phase for Tesla." encountered serious resistance," which he considered a "bigger negative signal" than announcing layoffs.

CNN: The layoffs once again prove that Tesla is suffering from the impact of competition

CNN pointed out that since the end of 2020, Tesla’s total number of employees has almost doubled, The layoffs are just the latest example of the company being hurt by increasing competition and weak demand in the electric vehicle industry. CNN also stated that this is not the first time Tesla has laid off employees. The company laid off 7% of its employees in 2019 and another 10% of its fixed-salary employees in 2022.

Business Insider: Musk needs to explain layoffs to appease investors

According to the US "Business Insider" magazine, Wedbush Securities technology analyst Dan Ai Dan Ives believes that after Tesla has experienced several extremely difficult days, Musk needs to explain the latest layoffs in order to regain investor confidence.

Ives noted that Tesla could lose investor support if Musk can't explain what's going on and calm Wall Street's concerns. "Wall Street wants and needs answers on Tesla's first-quarter conference call next Tuesday (April 23) as a string of bad news over the past few months has investors fearful of Tesla's growth story," he said. express.

Wall Street Journal: Adjustments to market demand

The US "Wall Street Journal" stated that Tesla announced more than 10% of its layoffs and let two senior executives resign. The move comes as demand for electric vehicles softens. The article pointed out that as Tesla used price cuts to stimulate sales, its once-enviable profit margins have continued to decline in recent quarters.

TheVerge: Tesla faces double pressure

American technology blog TheVerge stated that Tesla’s layoffs coincided with the company being squeezed by double pressure: One is falling demand for electric vehicles, and the other is Chinese manufacturers launching more affordable electric vehicles. In the fourth quarter of last year, Tesla lost the title of the world's largest pure electric vehicle manufacturer to BYD, but regained it in the first quarter of this year.

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