Tesla Dismisses Rumors Of 1700 Layoffs At German Gigafactory: Report

• Tesla told Reuters in an emailed statement later in the day that it has no plans to curb production or cut staff at the plant. 
• The company also added that production at the plant has remained steady in recent years. 
• The need for temporary workforce has fallen since the initial ramp up in production at the factory, the company reportedly noted.

EV giant Tesla (TSLA) reportedly has no plans to cut workforce at its sole gigafactory in Europe, the company said in a statement to Reuters, putting to rest reports otherwise.

German newspaper Handelsblatt reported earlier on Wednesday, citing internal documents, that the automaker cut about 1,700 employees since 2024 at its German plant. The plant currently employs 10,703 people, compared to 12,415 two years ago, the report said.

Tesla Dismisses Report

However, Tesla told Reuters in an emailed statement later on Wednesday that it has no plans to curb production or cut staff at the plant.

"Compared to 2024, there has been no significant reduction in the number of permanent staff. Nor are there any such plans," Tesla told Reuters. It also added that production at the plant has remained steady in recent years.

"The message from factory management remains: the situation and outlook at the gigafactory are stable - especially with regard to employee jobs," the statement reportedly said, while adding that some fluctuation is “completely normal.” The need for temporary workforce has fallen since the initial ramp up in production at the factory, the company reportedly noted.

Shares of TSLA rose 1% at the time of writing.

Tesla’s 2024 Mass Layoff

In April 2024, Tesla announced a 10% reduction in workforce across the globe. The move was expected to impact nearly 14,000 employees across the company’s many factories. 

Tesla started production at the German gigafactory in early 2022. The plant currently has the capacity to build over 375,000 units of Tesla’s best-selling Model Y SUV.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around TSLA stock rose from ‘bearish’ to ‘neutral’ territory over the past 24 hours, while message volume remained at ‘low’ levels.

TSLA stock has fallen marginally over the past 12 months. 

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