Tesla is sacking some of its employees working on battery production lines at its Shanghai plant, Bloomberg reported Friday. The move comes amidst an aggressive price war in China, where electric car manufacturers are offering incredible discounts to grab a larger market share.
However, it was not clear how many employees would be fired or what was the reason behind these layoffs. But a Mint report indicated that the process of installing automation equipment at the plant was underway, which could replace human labour.
As per media reports, around 1,000 workers are employed at the two battery production lines at the plant.
Make no mistake, Tesla’s Gigafactory in Shanghai is its largest and most productive plant, employing more than 20,000 workers in total and producing more than a million cars in a year.
Sacked employees offered to work at alternative workshops
As per the Mint report, the sacked employees have been offered to work at alternative workshops within the Shanghai factory, such as stamping, painting, or general assembly.
Watch: Tesla’s stock soars by $57 billion
The process is a part of the ongoing restructuring programme at the Tesla factory, a decision regarding which was taken earlier this week.
Ongoing price war in China’s EV market
Tesla on Friday declared that it will offer a cash bonus equivalent to $500 to new buyers of its top car models in China if they produce a referral code given by an existing owner. Tesla would offer new buyers of its Model Y and Model 3 vehicles a cash rebate of 3,500 yuan ($483) if they could cite a referral from an existing owner, reported Reuters.
Tesla also announced that new buyers will be given free access to its Enhanced Autopilot driver-assistance system for 90 days.
Tesla has made significant price cuts for its Model 3 sedan and Model Y in China, in an effort to compete in the country’s electric vehicle market. The base price of the Model 3 has been reduced by 14 per cent, while the Model Y’s price has been lowered by 10 per cent. This move by Tesla comes after the company joined forces with 15 other companies, including prominent Chinese EV manufacturers like Nio, Li Auto, and Xpeng.
They made a pledge organised by the China Association of Automobile Manufacturers to avoid engaging in “abnormal pricing.”
For all the latest business News Click Here
