Tesla fired dozens of salespeople after its disappointing Q1 delivery report

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Mark Matousek–  Business Insider

  • Tesla fired “several dozen” sales employees on April 4.
  • The cuts affected employees in Chicago; Brooklyn, New York; and Tampa, Florida.
  • A Tesla representative confirmed the firings to Business Insider and said the affected stores remain open.
  • Tesla announced a shift in its retail strategy in February that the company said would lead to layoffs.

Tesla dismissed “several dozen” sales employees on April 4, Bloomberg’s Dana Hull first reported. The cuts affected employees in Chicago; Brooklyn, New York; and Tampa, Florida.

A Tesla representative confirmed the firings to Business Insider and said the affected stores remain open.

The electric-car maker said in February that it would close many of its stores and convert the remaining stores into galleries and information centers as it shifts to an online-only sales model. Tesla CEO Elon Musk said the move would lead to layoffs during a conference call that followed the announcement.

Tesla partially reversed the store closures in March, saying it would “keep significantly more stores open than previously announced.” Musk later said in a March email to employees that the best-performing stores would remain open, while those that did not generate sufficient revenue would be closed, adding that Tesla would use a similar strategy to evaluate salespeople.

The April 4 cuts came the day after Tesla announced first-quarter delivery numbers that represented a 31% decrease from the prior quarter and fell below analyst estimates, but were a 110% increase from the first quarter of 2018.

Since late 2018, Tesla has made significant changes to the incentive plans for its salespeople. The company has undergone multiple rounds of layoffs over the past year.

 

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