Elon Musk Apologizes for Low Severance Packages in Tesla Layoffs

Elon Musk apologizes for low severance packages during Tesla layoffs.

  • Elon Musk apologizes for low severance packages during Tesla layoffs.
  • Some laid-off employees received severance below US legal requirements.
  • Tesla shifts focus to robotaxi development amid plans to enter the Indian market.

Elon Musk, CEO of Tesla, apologized for mistakenly low severance packages offered to employees amid the company’s recent layoffs affecting around 10% of its global workforce. Musk acknowledged the error in an email to Tesla staff, promising immediate correction.

Reports indicate that some laid-off employees received severance packages below legal requirements in the US, prompting concerns. As per regulations, companies must provide at least 60 days’ pay and notice before mass layoffs. The incident raises questions about Tesla’s handling of the restructuring process.

Meanwhile, Tesla is adjusting its strategy, reportedly shifting focus from producing an affordable EV to prioritizing robotaxi development. Despite speculation, Musk has not confirmed a timeline for this shift. Amidst these developments, Tesla eyes entry into the Indian market, with Musk scheduled to meet Prime Minister Narendra Modi to discuss setting up a manufacturing unit in the country.