?Elon Musk Laid Off More Than 90% of Staff in India — What Happened

Elon Musk Laid Off More Than 90% of Staff in India — What Happened?

Elon Musk has had a rough year after his email scandal, and now it seems like he is not out of the woods yet. This week, multiple news outlets reported that the Tesla CEO laid off more than 90% of the company’s staff in India. According to The Economic Times, roughly 890 employees of Tesla’s manufacturing unit in Sanjay- Auto Complex, in northern state of Gujarat were fired this week. The report further claims that most of those who lost their jobs had been on a temporary assignment for over a year, and their termination was part of an ongoing cost-cutting program at Tesla. In an email to employees, Elon Musk stated:

What happened to Tesla in India?

On February 20, 2018, media outlets reported the Tesla layoffs in India. According to these reports, at least 890 employees of Tesla’s manufacturing unit in Sanjay- Auto Complex, in northern state of Gujarat were fired this week. The report claims that most of those who lost their jobs had been on a temporary assignment for over a year, and their termination was part of an ongoing cost-cutting program at Tesla. Later, Tesla issued a statement to clarify the situation. It said that the 890 employees were not fired but were let go - since they were hired on a temporary basis. Tesla also stated that it is continuing to hire people in India.

Musk’s email to employees

On February 22, 2018, Musk sent an email to Tesla employees. In this letter, he apologized for the 890 employees being let go. He also offered them support, both at the office and in the community. He said that the layoffs were part of Tesla’s efforts to become profitable. He also blamed the media for the confusion. He said that the media created a “misleading” story, and he apologized for the mistake. He also said that he would give everyone who was let go an “impressive” amount of Tesla stock worth $27 million as a gift.

Layoffs at Tesla Factory in Sanjay

On February 23, 2018, Tesla announced that it was laying off 360 employees at its Sanjay facility in Gujarat. These employees were given three months’ termination pay, but they were not given severance. As the employees were let go, they were given severance pay, but the amount was less than the minimum wage in Gujarat. They also received the equivalent of their monthly salary.

Tesla said that they were not able to get orders from its customers at the rate they expected, and that was why they were laying off the employees. The company also admitted that it was part of the layoffs at its Sanjay plant. Tesla said that they must lower the prices of its cars to make them affordable for customers in India. This was done by reducing the margins that it gets from selling its cars in the country.

New GM Assembly Plant for Batteries and Cars

On March 1, 2018, The Economic Times reported that Tesla is planning to build a new plant in the country. This new plant will be built in the Mumbai area, and it will be used to make Tesla’s Model 3 sedan and its Powerwall home storage batteries. The report said that both firms are currently discussing the details of the project.

Tesla Sold Its Building to Panasonic for $30 Million

On March 3, 2018, The Economic Times reported that Tesla sold its building in Gurgaon, in the northern state of Haryana to a company owned by Panasonic. The building was a part of the company’s global headquarters. Panasonic will now use this building to create a new facility in the country. This facility will be used to export batteries made by Tesla’s energy-storage unit, the Powerwall home storage batteries. Tesla said that the building was no longer needed after the company started manufacturing in China and the first-gen Model 3 sedan, which is being produced in the country, is being exported as well.

Bottomline

Overall, this year has been nothing short of a disaster for Elon Musk. The Tesla CEO has had to deal with a range of scandals, and the most recent one was the layoffs at the company’s manufacturing unit in India. The fact that a large number of employees were let go because they were temporary workers is troubling, and it shows that the company is running into financial troubles. It is important for Tesla to restructure itself, and it needs to do this soon if it wants to remain competitive in the market.