Among the top US and Chinese markets affected by Tesla's worldwide employment reduction are

Among the top US and Chinese markets affected by Tesla's worldwide employment reduction are

Sales in the US are down for Tesla, and it is facing significant investment expenses for new models and artificial intelligence in addition to growing competition in China in a pricing battle with competitors headed by BYD.

According to two sources, over 10% of Tesla's China sales team workers were losing their employment after receiving notification that they were being let off.

According to five people informed on the topic, Tesla is cutting jobs globally, including in sales, technology, and engineering. The automaker's two largest markets are the United States and China.

In an internal letter obtained by Reuters on Monday, CEO Elon Musk informed employees that the business is letting go of over 10% of its worldwide personnel due to declining sales and a growing competition in the pricing of electric cars.

Numerous U.S.-based service centers had significant layoffs that started right after, mostly affecting technicians and sales employees, according to one source. The insider said that another site fired every member of the front desk crew.

A spreadsheet listing more than 140 employees—mostly engineers—who had been let off and were looking for new employment was shared on LinkedIn by a Tesla program manager in California.

A pair of sources said that employees of Tesla's China sales team were receiving notices of layoffs; one source purportedly stated that over 10% of the team was losing their positions.

According to a third source, Tesla plans to let off just a limited number of employees in Shanghai, the location of its biggest plant—roughly "several dozen" personnel.

On Tuesday, Tesla's stock dropped 4% to $154.82. Monday's closing saw a 5.6% decrease.

"The sweeping layoffs ... should now leave no doubt that the decline in deliveries has been a function of lower demand and not supply," J.P.Morgan analysts said. They added that this "has far-reaching implications for the hypergrowth narrative still embedded in Tesla's share price" .

Both Tesla's China branch and its US headquarters did not immediately reply to calls for comment. Since they were not allowed to interact with the media, all of the sources refused to be identified.

When contacted for comment, the municipal administrations of Beijing and Shanghai did not reply right away.

Tesla Germany denied claims made by German media that 3,000 of the company's approximately 12,000 employees had been let off, stating that it was assessing the best way to carry out Musk's directives at the factory.

"We will pursue the measure for Gigafactory Berlin-Brandenburg against the background of all labor law and co-determination requirements, bringing in the works council," Tesla Germany said in an e-mail to Reuters on Tuesday. The company added that no workers have received notice as of yet.

The German union IG Metall said on Monday that Tesla had emailed every employee without first notifying or consulting the works council, as is normal in Germany.

According to a person with knowledge of the situation, over 1,000 employees at the facility are on temporary contracts, making them more susceptible to termination even though German labor law has tight guidelines about terminating employees.

Sales of Tesla's flagship vehicle, the Model 3 is seeing a slowdown in the US, significant investment expenses in artificial intelligence and new models, and growing rivalry in China in a pricing war with competitors headed by BYD.

For the first time in over four years, there was a decline in global car deliveries in the first quarter as price reductions did not increase demand.