Tesla is reportedly laying off ‘more than 10 percent’ of its workforce

“There is nothing I hate more, but it must be done,” said Elon Musk, in the email published by Electrek. “This will enable us to be lean, innovative and hungry for the next growth phase cycle.”

Tesla has also reportedly abandoned its plans to produce an affordable Model 2 that would cost around $25,000 as it shifts to instead focus on a new robotaxi. This comes as the company faces mounting pressure from the one-two punch of waning demand and more affordable EVs made by Chinese manufacturers. Last year, Tesla lost the title of world’s top maker of electric vehicles to China’s BYD which produced 3.02 million EVs, compared to Tesla’s 1.81 million.