Tesla to stop production in Germany for 4 days after protests erupt against EV maker’s expansion- Republic World

Production halt after labour issues: American Electric Vehicle (EV) maker Tesla will shut down production in its German plant in Gruenheide for four days owing to protests against its expansion plans, the German newspaper Handelsblatt reported on Tuesday. The electric car manufacturer is sending all employees to work from home on Friday, according to an email seen by Handelsblatt that was sent to employees on Monday. Thursday is a public holiday in Germany.

Earlier this week, Tesla initiated a wave of layoffs in a US plant, according to reports from Electrek on Monday. The layoffs have taken place across departments, including software, service, and engineering, as confirmed by emails and insider sources.

This latest round of cutbacks follows Tesla’s recent decision to disband its EV charging department, part of a broader workforce reduction exceeding 10 per cent globally. Despite the fresh round of layoffs, Tesla’s shares saw a modest 1 per cent increase. However, the company has yet to respond to Reuters’ request for comment on the matter. Tesla is in the middle of mounting pressure as sales have witnessed a decline and there is pressure building from competition in the EV market, characterised by a fierce price war among automakers. The company’s challenges are exacerbated by higher interest rates, dampening the pace of electric vehicle adoption.

Last month, Tesla projected second-quarter costs of over $350 million associated with the extensive layoffs.

(With Reuters inputs)