14,000 jobs worldwide

Tesla to cut more than one in 10 jobs

Tesla boss Elon Musk announced the job cuts in an internal memo, according to reports.(Bild: AFP)

The US electric car manufacturer Tesla is reportedly planning to cut more than one in ten jobs worldwide. According to the report, 14,000 jobs are affected by the job cuts.

Tesla CEO Elon Musk announced the job cuts in an internal memo, several media outlets such as the tech publication Electrek and Handelsblatt reported on Monday, citing the letter. 

"This will make us lean, innovative and hungry for the next phase of growth," Musk wrote. He hates the move, but it is necessary.

Tesla will present its figures for the past quarter next week. The electric car pioneer started the year with a significant drop in sales. It was the first time in almost four years that the company sold fewer vehicles than a year ago.

Strong competition from industry newcomers
Tesla is struggling with competition from industry newcomers such as smartphone manufacturer Xiaomi in China and the growing range of electric cars.

The effect of price reductions and discounts is now dwindling, as the Americans are only slowly refreshing their ageing model range and will only come up with important new products next year. According to insiders, Tesla has also buried its plans to build an affordable electric car for the mass market.