Tesla China Gets Morale Boost As Laid-Off Employees Return: Report

Tesla, Inc. TSLA China teams are reportedly reinstating laid-off employees, focusing primarily on roles in sales and service.

Recently, Tesla implemented its largest global layoffs since 2017, with over 14% of its workforce affected, CnEV Post reported, citing local media. In China, the sales and service departments bore the brunt of these reductions.

In some malls affected by the layoffs, certain stores retained as few as five to six employees, a staffing level deemed insufficient for normal operations, the report added.

The report highlighted that Tesla’s stores in malls typically have eight to nine employees on average.

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However, not all laid-off Tesla China employees have expressed interest in returning to the company. Some have opted to join other brands, such as Nio NIO, to pursue new career opportunities, CnEV Post reported.

A positive development for Tesla China is the return of senior vice president Tom Zhu, who has been actively assessing store operations, the report read. While no major changes have occurred, his presence is reportedly boosting team morale.

Tesla China sales surged to 17,000 units last week, marking the best week of the quarter, as reported by CnEV Post.

Price Action: TSLA shares are trading higher by 3.30% to $193.63 at last check Wednesday.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.