Elon Musk's Tesla Laying Off Employees At Shanghai Battery Plant Amidst Price War: Report
Portfolio Pulse from Benzinga Newsbot
Tesla Inc. has started laying off battery production workers at its Shanghai plant amidst a price war in China. The exact number of layoffs and specific reasons are unclear. Some employees have been offered transfers to other workshops. Automation equipment is being designed to potentially replace human labor on the battery production line. Despite layoffs, Tesla's deliveries from Shanghai rose almost 20% YoY in June. CEO Elon Musk is comfortable with making less money on each car sold, following several rounds of price cuts.
July 07, 2023 | 9:27 am
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Tesla is laying off workers at its Shanghai plant amidst a price war, potentially impacting its production capacity. However, the company's deliveries from Shanghai have increased, indicating resilience.
The layoffs could potentially impact Tesla's production capacity in the short term, especially if the number of layoffs is significant. However, the increase in deliveries from Shanghai indicates that the company is still able to meet demand despite the layoffs. The ongoing price war in China could also put pressure on Tesla's margins.
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