Elon Musk, the CEO of Tesla, recently issued an apology to the company's employees for the incorrect calculation of severance packages amid a significant company reorganization. Following the announcement of a 10% reduction in its global workforce, which translates to approximately 14,000 employees based on 2023 year-end data, Musk acknowledged the oversight in some of the severance packages and assured immediate correction of the error. The revelation came after reports surfaced that some employees who were laid off had received severance packages equivalent to two months' pay, below the mandated 60-day minimum by US labor laws.
Notably, as part of the layoff process, employees were reportedly informed by security personnel that their ID badges would no longer grant them access to the premises, indicating the termination of their employment. In response to the layoffs, Tesla emphasized that the restructuring was essential to ready the company for its upcoming growth phase. Additionally, there were indications from Reuters that Tesla would shift its strategic focus away from producing a more affordable electric vehicle, redirecting efforts towards the development of robotaxi technology, a move that Elon Musk refuted without committing to any specific timeline for the vehicle launch.
In other news, Tesla is gearing up to enter the Indian market, with Elon Musk scheduled to meet Prime Minister Narendra Modi in New Delhi on April 22 to discuss setting up a manufacturing unit in the country. Despite previous obstacles caused by high import duties on luxury cars, the Indian government has made adjustments to its EV policy in an effort to attract foreign companies like Tesla to establish manufacturing facilities in India, signaling potential progress in Tesla's entry into the Indian market.