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On April 24th, the incident of Tesla breaking the contract with fresh graduates attracted attention.
According to Yinshi Finance, a fresh graduate who was terminated by Tesla (TSLA. US) told reporters that he received a call from HR on the morning of April 24th. He was informed that due to a temporary adjustment in company policies, his position was cancelled and he would be compensated for one month's salary. However, the spring recruitment has basically ended, making it difficult to find a job. Another fresh graduate who received an offer for a sales position stated that the onboarding training originally scheduled for mid April was cancelled, and the onboarding process was informed. HR stated over the phone that if there is a need in the future, a new interview can be conducted.
On social media, several netizens have reported that they were unilaterally terminated by Tesla (TSLA, stock price of $144.68, market value of $460.78 billion) after receiving their onboarding offer.
"I received a phone call from HR this morning, saying that I might be laid off. The news was like a bolt from the blue. I didn't expect to be unilaterally defaulted by the company before I even started work. At this time, the spring recruitment is almost over, and my job is also gone." A netizen posted on Xiaohongshu.
Screenshot of Xiaohongshu APP

Some netizens expressed a calm attitude and submitted a request for recruitment.
In addition, a blogger posted that Tesla had withdrawn all offers from fresh graduates today due to submissions from backend fans, with a unified compensation of one month's penalty for breach of contract.
It is worth noting that in the comment section of relevant posts, many HR recruitment accounts from companies such as NIO and Jike have expressed their welcome to graduates who have been terminated to submit their resumes.
Screenshot of Xiaohongshu APP

After the US stock market closed on April 23, Tesla announced its first quarter results, with revenue of $21.3 billion, a year-on-year decrease of 9%. This decline even exceeded the sales decline caused by production interruptions during the pandemic; Net profit decreased significantly by 55% from $2.5 billion a year ago to $1.1 billion; Gross profit decreased by 18%.
In Tesla's Q1 2024 financial report and Q&A conference call, Musk stated that as we prepare for the company's next phase of growth, we will make a difficult but necessary decision to reduce the number of employees by more than 10%.
According to First Financial, the reporter learned that Tesla's layoffs in China involve almost all departments, and some departments even have a layoff rate far exceeding 10%.
Interface News reported on April 24th that Tesla plans to lay off over 6000 employees in Texas and California to advance CEO Elon Musk's global layoff plan of over 10%. This layoff includes 2688 workers from Austin, where Tesla headquarters is located, and Tesla has a major factory in Austin. According to the Worker Adjustment and Retraining Notice Act (WARN) submitted to the Texas Labor Commission, layoffs will begin on June 14th and last for 14 days. According to the WARN notice submitted to California, Tesla also revealed plans to lay off 3332 employees in multiple factories in California.
Before Tesla launched its largest ever round of layoffs, its global workforce had exceeded 140000. According to insiders, although the automaker announced on April 15th that it will lay off more than 10% of its workforce, the actual number of layoffs may exceed 20000.
It is worth noting that Musk announced in a conference call that he will accelerate the launch of cheaper affordable models, and his stock price surged by over 13% after hours. Since the beginning of this year, Tesla's stock price has fallen by over 40%, with a total market value evaporating over 320 billion US dollars (approximately 2.3 trillion yuan).
As of the close of the US stock market on the previous day, Tesla rose 1.85%.
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