Angered by Tesla’s poor performance, Elon Musk lays off senior staff

Elon Musk, chief executive of American electric vehicle (EV) maker Tesla, has laid off some executives from the company’s senior management. Earlier this month too, Tesla had cut its workforce by about 10 percent. Recently Musk had said that the company needs to be re-organized.

According to a report by The Information, Musk has decided to make cuts in Tesla’s senior management as well as lay off hundreds of workers. In the first quarter of this year, the company’s profit had declined to approximately $1.13 billion. It was worth $2.51 billion in the same period last year. In an email sent by Musk to senior executives of the company, Rebecca Tinucci, Senior Director of Tesla’s Supercharger Group, and Daniel Ho, Head of New Products, have been informed about leaving Tesla.

Musk, who returned from a visit to China, said, “We believe that electric vehicles will dominate the market.” Recently, the company had reduced the prices of some of its models in America by up to $2,000. Tesla’s deliveries declined by approximately 8.5 percent in the first quarter. Recently Musk had postponed his visit to India. During this visit, he was also to have a meeting with Prime Minister Narendra Modi. Musk was scheduled to come on April 21 to announce the launch of business in India. Billionaire Musk had said in a post on social media platform “Due to the heavy workload at Tesla, the India visit has to be postponed but I am looking forward to this visit in the current year.”

Apart from Tesla, Musk is also seeking permission to start business in the country for his satellite internet service providing company Starlink. Sources having information about this had said that the Central Government has assured Starlink of getting this permission by the third quarter of this year. Prime Minister Modi and Musk had a meeting in New York, America in June last year. Tesla had lobbied to impose import tax on electric vehicles in the country. Last month, the central government had announced a new EV policy in which the import tax on some models has been reduced from 100 percent to 15 percent if an automobile company makes a minimum investment of $ 500 million.