Tesla expects to book over $350 million in costs for layoffs

By Thomson Reuters Apr 24, 2024 | 5:18 AM

(Reuters) -Tesla expects to book more than $350 million in costs in the second quarter for the mass layoffs it began last week, the automaker disclosed in a regulatory filing on Wednesday.

The electric vehicle maker also reiterated that it expects capital expenditure to exceed $10 billion in 2024 and to be between $8 billion to $10 billion in each of the following years.

The filing follows Tesla’s earnings on Tuesday, when it said it will introduce “new models” by early 2025 using its current platforms and production lines, retreating from more ambitious plans to produce an all-new model that had been expected to cost $25,000.

Last week, an internal memo seen by Reuters showed that Tesla was laying off more than 10% of its global workforce, as it grapples with falling sales and an intensifying price war for EVs.

(Reporting by Harshita Mary Varghese; Editing by Savio D’Souza)