Tesla plans to eliminate 3,332 California jobs this June, with the Fremont factory absorbing the heaviest blow, according to state filings released Monday.
The electric vehicle giant submitted WARN notices to California regulators, a legal requirement for mass workforce reductions. The filing arrives as Tesla confronts shrinking sales and mounting pressure from rival EV makers.
Fremont accounts for 2,267 of the job losses spread across a dozen sites. More than 1,400 cuts tie directly to the company’s car plant on Fremont Boulevard. Meanwhile, Lathrop, home to Tesla’s Megapack battery facility and parts distribution hub, will shed 515 positions.
Palo Alto sees 486 layoffs, including 237 at the engineering headquarters on Page Mill Road. Southern California doesn’t escape either. A separate WARN notice confirms 64 workers will depart Tesla’s Burbank dealership and service center, 30 of them from that location.
The reductions stem from a companywide restructuring Musk announced in a memo obtained by Electrek. He told staff Tesla had conducted a thorough organizational review and decided to cut global headcount by more than 10%. “There is nothing I hate more, but it must be done,” the CEO wrote. Tesla offered no response to questions about severance packages.
The Austin headquarters reportedly faces nearly 2,700 additional layoffs.
Even as the California figures became public, Musk took to X boasting that Tesla had generated 30,000 manufacturing jobs across the state. The timing underscores a sharp contrast between past growth and present contraction.
Tesla’s first quarter earnings call Tuesday revealed a 9% revenue decline year over year. Still, Musk managed to stir investor enthusiasm by hinting at a more affordable future model.
The layoffs mark one of the largest single workforce reductions in Tesla’s California history. Whether the company can reverse its slide while scaling back production capacity remains an open question.
