Wednesday, July 24, 2024

Tesla China Teams Rehire Laid-Off Staff Amid Market Shifts

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Tesla China operations have begun rehiring laid-off employees, primarily in sales and service roles, as reported by local media outlet Jiemian today. This move follows Tesla’s recent global layoffs, its largest since 2017, affecting over 14 percent of its workforce worldwide. In China, the sales and service departments bore the brunt of these layoffs, leaving some stores in malls with only a handful of staff, significantly impacting operations.

According to a former Tesla sales employee cited in the report, the rehiring efforts have met with mixed responses from laid-off personnel, with some opting to pursue opportunities with other brands, including Nio’s newly launched Onvo sub-brand. Nio recently began pre-sales of its first Onvo model, the L60, priced competitively below Tesla’s entry-level Model Y.

See also: Tesla China Launches Zero Interest, Zero Down Payment Promotion for Model 3 and Model Y

“Before the Onvo brand was officially launched, Nio had already started recruiting for various positions, including marketing heads and store managers,” the report stated, highlighting Nio’s proactive approach in expanding its workforce amidst market shifts.

The return of senior vice president Tom Zhu to Tesla’s China team has provided a morale boost, although no significant operational changes have been reported yet. Tesla China recently saw a resurgence in sales, reaching 17,000 units last week, marking its strongest performance of the quarter.

See also: Tesla China Updates Model 3 Delivery Estimates, Offers New Incentives

However, challenges persist as Tesla China works to mitigate issues such as fake orders, reportedly spurred by high incentives for sales staff. “Tesla China is actively addressing concerns around fake orders, aiming to maintain integrity amid sales incentives,” the report added.

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