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Tesla is laying off more than 10% of its global workforce — a move CEO Elon Musk called a “difficult decision” for the company as it grapples with falling sales amid an intensifying price war for electric vehicles.

The layoffs were annnounced in an internal memo sent to Tesla’s global employees. Per the company’s latest annual report, it touted 140,473 staffers as of December 2023.

Though the memo didn’t specify how many jobs would be affected, a reduction of more than 10% means that at least 14,047 employees of the world’s largest electric automaker are set to get a pink slip.

“As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity,” Tesla chief Elon Musk wrote.

“As part of this effort, we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally,” he added in the memo, which was first reported by tech publication Electrek.

Tesla’s stock dropped over 2% in pre-market trading following news of the impending layoff — which comes less than two weeks after the company posted its first year-over-year drop in quarterly car deliveries since 2020.

Tesla reported earlier this month that it delivered 386,810 vehicles globally in the first three months of 2024 — down more than 9% from the 422,875 vehicle sales in the first quarter of last year. The number came in well below Wall Streets expectations of 457,000 deliveries.

The Austin, Texas-based company had produced more than 433,000 vehicles intended to be delivered during the first quarter, meaning roughly 12% of its inventory went unsold.

Despite the shortfall, the results were enough for Tesla to reclaim the title as the worlds top EV seller from BYD.

Tesla lost the title to BYD late last year at a time when the Chinese-made EV rival was touted for offering higher-volume models that cost much less than what Tesla charges for its cheapest Model 3 sedan in China.

Short for Build Your Dreams, the carmaker backed by Warren Buffett sold 300,114 all-electric vehicles globally in the first three months of the year, up 13% from the same period in 2023.

Elsewhere in China — which has been stepping on the gas in the race for global domination of the auto industry — Japanese automaker Nissan has also laid out plans for 30 new vehicles 16 of which are set to be all-electric.

The company said this month that seven of its forthcoming new models will be reserved for the US and Canada alone, though it wasnt immediately clear how many of those vehicles would be fully electric.

Nissan also teased in its press release that the Americas will be getting e-POWER and plug-in hybrid models, which use a mix of electricity and fuel for power.

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Meanwhile, Tesla has been slow to refresh its aging models and even said this month that it was canceling a long-promised inexpensive car that investors have been counting on to drive mass market growth.

Tesla, which is set to report its full financials for the first quarter of 2024 on April 23, is braced for a slowdown in 2024 after years of rapid sales growth.

Representatives for Tesla did not immediately respond to The Post’s request for comment.

In the fourt quarter of 2023, Tesla recorded a gross profit margin of 17.6% in the fourth quarter — its lowest in more than four years.

The firm is now looking to shore up its margins despite slashing its headcount for the second time in a little over a year.

Tesla had previously laid off 4% of its workforce in New York in February last year as part of a performance review cycle and before a union campaign was to be launched by its employees.

With Post wires

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Science

Point Nemo: The Remote Ocean Graveyard Where the ISS Will Make Its Final Descent in 2030

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NASA will retire the ISS in 2030, sending it to Point Nemo, a remote Pacific zone known as the spacecraft cemetery. Most of the station will burn up during reentry, with remaining debris falling harmlessly into the sea. The controlled descent aims to avoid past mishaps and reflects a new era of commercial space stations.

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Business

Chancellor Rachel Reeves blames other people’s mistakes for her predicament but she bears some responsibility

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Chancellor Rachel Reeves blames other people's mistakes for her predicament but she bears some responsibility

To say this wasn’t the plan is an understatement.

When Rachel Reeves said last year (and many times since) that she had no intention of coming back to the British people with yet more tax rises, she meant it.

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But now the question ahead of the budget later this month is not so much whether taxes will rise, but which taxes, and by how much? Indeed, there’s growing speculation that the chancellor will be forced to break her manifesto pledge not to raise the rates of income tax, national insurance or VAT.

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Chancellor questioned by Sky News

Her argument, made in her news conference on Tuesday morning, is that she is in this position in large part because of other people’s mistakes, primarily those of the Conservative Party.

But while it’s certainly true that a significant chunk of the likely downgrade to her fiscal position reflects the fact that the “trend growth rate” – the average speed of productivity growth – has dropped in recent years due to all sorts of issues, including Brexit, COVID-19 and the state of the labour market, she certainly bears some responsibility.

A problem that is some of her own making

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First off, she established the fiscal rules against which she is being marked by the Office for Budget Responsibility.

Second, she decided to leave herself only a wafer-thin margin against those rules.

Third, even if it weren’t for the OBR’s productivity downgrade, it’s quite likely the chancellor would have broken those fiscal rules, due to the various U-turns by the government on welfare reforms, winter fuel, and extra giveaways they haven’t yet provided the funding for, such as reversing the two-child benefit cap.

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Now, at this stage, no one, save for the Treasury and the Office for Budget Responsibility, really knows the scale of the task facing the chancellor. And in the coming weeks, those numbers could change significantly.

But it’s becoming increasingly clear, from the political signalling if nothing else, that the government is rolling the pitch for bad news later this month.

Indeed, for all that this government pledged to bring an end to austerity, a combination of higher taxes and lower spending will be highly unpopular, not to mention deeply controversial. And while the chancellor will seek to blame her predecessors, it remains to be seen whether the public will be entirely convinced.

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UK

Southport inquiry: Axel Rudakubana’s brother feared he would kill their father before attack

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Southport inquiry: Axel Rudakubana’s brother feared he would kill their father before attack

Axel Rudakubana’s brother feared he would kill a family member two years before the Southport attack, an inquiry has heard.

Dion Rudakubana, who is two years older than his brother, said Axel has a “short temper” and was prone to “violent outbursts”, hitting him regularly when they were children.

He said Axel’s behaviour escalated after he was expelled from the Range High School in Formby, Merseyside, in 2019 and their parents had “lost control”.

The public inquiry into the Southport attack heard by the time he left for university in 2022, Dion feared his brother would kill a family member.

In messages sent to a friend when he returned to the family home for Christmas, Dion said: “My brother doesn’t show mercy, my dad just has to try not to die… We hide knives to mitigate that factor.”

He told the inquiry there were times the police would be called out and recalled one incident when “my father was holding my brother off”.

“I remember being scared somebody was going to die… my dad,” he says.

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(Left to right) Bebe King, Elsie Dot Stancombe and Alice da Silva Aguiar. (Pic: Merseyside Police)
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(Left to right) Bebe King, Elsie Dot Stancombe and Alice da Silva Aguiar. (Pic: Merseyside Police)

Rudakubana was 17 when he murdered Elsie Dot Stancombe, seven, Bebe King, six, and Alice da Silva Aguiar, nine, in a knife attack on a Taylor Swift-themed dance class on July 29 last year.

Eight other children, who cannot be identified because of their age, were also injured, along with yoga instructor Leanne Lucas, who was leading the dance class, and businessman John Hayes, who was one of the first people on the scene and tackled the killer.

Giving evidence from a remote location by video-link, Dion’s voice could be heard but he could not be seen at Liverpool Town Hall.

After swearing on the Bible, he told how he and his brother grew up in Cardiff after their parents Laetitia Muzayire and Alphonse Rudakubana came to the UK from Rwanda and were granted asylum.

Flowers left at a memorial for the victims
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Flowers left at a memorial for the victims

Dion says the genocide had a “very heavy influence on them” but he doesn’t feel he was “traumatised” by his parents’ experiences.

His mother and father studied for degrees and moved to Southport in 2013 because his mother got a job, while his father started working as taxi driver because “he was not finding work in the area he studied in”, Dion said.

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He told how Axel was resentful of him after they had to move schools because of his health issues.

Dion said Axel was physically bigger, and he felt “increasingly wary” of his younger brother who would regularly hit him and smash plates and glasses in their home.

Dion said the last interaction he had with his brother was in the summer of 2023, when Axel threw a metal bottle at him, but luckily he had already closed the door.

In his witness statement, Dion compared his brother with the “sociopath” played by Javier Bardem in No Country For Old Men, who kills ten people over the course of the film.

“I watched it recently and it concerned me,” he told the inquiry, which continues on Wednesday.

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