New Delhi, May 10: Tesla, the renowned electric vehicle manufacturer has reportedly laid off its employees across various departments┬аin┬аits Shanghai plant.┬аThe company, led by Elon Musk, has been struggling to regain market share in the automotive industry,┬аwhich has been┬аimpacted 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┬аincluding┬аengineers, customer service personnel, production line workers and logistics staff at┬аTesla's┬аShanghai manufacturing facility, which provides for more than half of the┬аcompany's┬аglobal production.┬аSimpl 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┬аworld's┬аlargest automotive market, which has┬аbeen impacted┬аby a global slowdown in electric vehicle demand and competition from local rivals like BYD Co.┬аTesla's┬аmarket share in China declined in the first quarter of 2024 compared to the same period in 2023.┬а

The electric vehicle┬аmaker's┬аshare of the Chinese market fell to approximately 7.5┬аpercent┬аin Q1 2024, down from around 10.5┬аpercent┬аa year earlier.┬аThe exact number of employees impacted by the layoffs in China is uncertain.┬аHowever, most of the terminated workers will┬аreceive┬аreceive┬аa payout equivalent┬аof┬аone┬аmonth's┬аpay for each year they were employed, plus an additional three┬аmonthтАЩs┬аsalary.

Apart from┬аthese challenges, Tesla has received preliminary approval from Chinese authorities to launch its driver-assistance technology in the country, which┬аis expected┬аto provide a quick financial boost and generate immediate revenue.┬аElon Musk-Run Tesla Revokes Indian StudentтАЩs Summer Internship Amid Ongoing Layoffs, Says Report.

There are certain┬аconditions 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).