Tesla Inc (NASDAQ:TSLA) is planning a wave of layoffs as well as a hiring freeze in the new year, according to news reports, while also offering a discount on its vehicles.
News website Electrek, which quoted sources familiar with the matter, said the electric vehicle (EV) manufacturer will scale back on the number of its employees in the first quarter of 2023.
Tesla chief executive and Twitter Inc owner Elon Musk had said in June this year that he planned to cut the EV company's workforce by 10%.
Electrek also reported that Tesla will be increasing the level of discount to US$7,500 on all Model 3 cars - which currently cost US$44,990 - and Model Y cars - which currently cost US$62,910 - delivered in the New Year.
The thought behind the discount decision is believed to enable Tesla to qualify for a US federal tax credit incentive. As the incentive is being put in place for 2023, buyers need to take delivery of their vehicles on or after January 1 to qualify.
The moves come as Tesla’s share price has plummeted 60% in the last year to US$137.5, its lowest level in over two years.
Tesla shareholders have become increasingly concerned by Musk’s Twitter antics, with the South African dumping billions of dollars worth of Tesla stock to fund his takeover of the social media platform.
While the once richest man in the world continues to sell, one prominent investor continues to buy, however. Ark Invest founder Cathie Wood has bought 445,000 shares of Tesla since 3 October as she continues to show faith in the electric vehicle maker.