New Delhi, May 10: Tesla, the renowned electric vehicle manufacturer has reportedly laid off its employees across various departments in its Shanghai plant. The company, led by Elon Musk, has been struggling to regain market share in the automotive industry, which has been impacted by a slowdown in electric vehicle demand.

As per a report of Money Control, Tesla ramps up job cuts in China as sales slowdown bites. The layoffs, which began in mid-April, have now extended to various departments including engineers, customer service personnel, production line workers and logistics staff at Tesla's Shanghai manufacturing facility, which provides for more than half of the company's global production. Simpl Layoffs: Fintech Startup Lays Off Around 100 Employees in Restructuring Exercise, Affected Will Receive Severance Pay of Two Months; Check Details.

The company, led by Elon Musk, has been struggling to regain market share in the world's largest automotive market, which has been impacted by a global slowdown in electric vehicle demand and competition from local rivals like BYD Co. Tesla's market share in China declined in the first quarter of 2024 compared to the same period in 2023. 

The electric vehicle maker's share of the Chinese market fell to approximately 7.5 percent in Q1 2024, down from around 10.5 percent a year earlier. The exact number of employees impacted by the layoffs in China is uncertain. However, most of the terminated workers will receive receive a payout equivalent of one month's pay for each year they were employed, plus an additional three month’s salary.

Apart from these challenges, Tesla has received preliminary approval from Chinese authorities to launch its driver-assistance technology in the country, which is expected to provide a quick financial boost and generate immediate revenue. Elon Musk-Run Tesla Revokes Indian Student’s Summer Internship Amid Ongoing Layoffs, Says Report.

There are certain conditions attached to the approval and Tesla has managed to overcome two major obstacles by satisfying regulations around data security and privacy protection and making an agreement with Chinese tech giant Baidu Inc. for mapping and navigation services.

(The above story first appeared on LatestLY on May 10, 2024 11:27 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).