Tesla said in email it sent some “too low” severance packages | Wilnesh News

Tesla Chief Executive Elon Musk sent an internal email on Wednesday telling employees that the company’s severance package to some laid-off workers this week was too low.

“As we reorganized Tesla, I noticed that some severance packages were too low,” Musk wrote in a brief email. “I deeply apologize for this error. We are correcting it immediately.”

Tesla did not immediately respond to a request for comment.

The electric vehicle company said on Monday it would cut more than 10% of its global workforce, bringing its total workforce to about 140,000 by the end of 2023.

The company has revealed few details about the layoffs, but in a company-wide memo sent on Monday, Musk said the cuts would help “prepare” the company for its next phase of growth.

earlier this month, Reuters reports Tesla will change its strategy and abandon its previous plans to produce cheaper electric cars and instead focus on the development of robotaxis as directed by Musk.On Tuesday, Musk appeared to confirm the report in a note postal on X.

Musk has yet to say whether Tesla will stick to his 2023 “master plan,” which lays out a “proposed path to a sustainable global energy economy through end-use electrification and sustainable generation and storage.”

The company reported an 8.5% annual drop in first-quarter deliveries, the first decline since 2020, when the global pandemic disrupted operations.

Tesla will discuss first-quarter results with shareholders on Tuesday, April 23, and executives are likely to reveal more about the restructuring and which departments will be most affected.

In a proxy statement filed on Wednesday, Tesla asked shareholders to approve Musk’s CEO compensation package, which equals the record pay package the company previously awarded him in 2018.

His previous $56 billion CEO compensation plan was invalidated in a ruling by Delaware Chancery Court Judge Kathaleen McCormick, who held that as CEO, Musk controlled Sla, and the remuneration committee of the board of directors is not independent, among other factors.

As of Wednesday, Tesla shares had fallen about 37% this year, closing at $155.45.