Tesla To Replace Staff With Indian Employees?

Tesla To Replace Staff With Indian Employees?

Elon Musk, known for his upcoming meeting with PM Narendra Modi, faces news of Tesla, his electric car company, laying off 10% of its global workforce. 

According to Electrek, a US news portal, rapid growth caused duplicate roles, leading to the layoffs. 

Musk stated in an internal email that these actions are crucial for cost cutting and productivity as Tesla enters its next phase. 

He expressed reluctance but emphasized the necessity for the company's efficiency and innovation in the future. Musk's decision aims to make Tesla more prepared for future growth.

On the other hand, sources in the industry sector hint that Tesla's chief is planning to replace all the existing employees with Indian employees, making them work within India, as Tesla is more remote-driven. 

"That's the reason for these mass layoffs. Musk seems to be planning to replace dollar pay with rupee salaries. If he is paying a technician a salary of USD 100,000 per annum, he can get the same or better service by paying INR 20 lakh per annum (almost equivalent to USD 25,000) within India", said an analyst stationed in the USA.

Musk's investment in India aims to leverage the costs of everything and make India the main hub of Tesla's business, according to industry sources. 

If it is true, then it can be understood that Musk is not just aiming at an extended investment in India, but apparently shifting his entire business unit to India.