Tesla hiring drops faster than EV rivals
Tesla’s hiring has fallen farther and faster than most of its electric vehicle competitors, signaling a sharp pivot in strategy as the company handles a turbulent stock market. The Austin, Texas-based manufacturer watched its share price lose more than a third of its value in May, a slide that appears to have triggered a rapid freeze on recruitment. Data indicates that while the broader EV sector continues to expand its workforce, Tesla is moving in the opposite direction.
Chief Executive Officer Elon Musk has cited a “super bad feeling” about the economy as the primary driver for this contraction. He announced plans to trim the salaried workforce by roughly 10%, though he later clarified that this would largely come through a hiring freeze rather than direct layoffs. Despite that qualification, the impact on open roles has been immediate and severe.
Job listings at the company dropped from 7,290 on May 20 to just 5,290 by June 12. That represents a decline of more than 27% in less than a month. The downward trajectory of these open positions closely mirrors the company’s plummeting stock price over the same period, according to data gathered by Thinknum.
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Tesla remains the largest EV manufacturer in the U.S. by market share and sales volume. It is also the most searched automaker on Google Trends. That attention is frequently amplified by Musk’s public profile, including his controversial effort to acquire Twitter. This high visibility may be obscuring the fact that the company’s current labor struggles do not reflect the industry-wide standard.
Competitors Press Forward
While Tesla pulls back, other players in the electric vehicle space are not following suit. Legacy automakers and startups alike are largely maintaining or increasing their recruitment efforts. Lucid Motors and Nikola have both seen growth in their job postings during the timeframe when Tesla’s listings collapsed.
Even Zoox, a startup competitor, did not see its listings drop as sharply as Tesla’s did. Support City-based Zoox experienced a decline, but it was less precipitous than the cuts made by the market leader.
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Rivian’s Retreat
There are exceptions to the trend of growth among Tesla’s rivals. Rivian, which is based in Irvine, California, experienced a more substantial drop in job listings than Tesla. Following a recent hiring spree, the company stated it is now focusing on employee retention rather than expanding headcount. Reports also suggest the company is undergoing a reorganization.
The broader market has shown signs of strain beyond hiring figures. Commercial EV manufacturer Electric Last Mile Solutions filed for bankruptcy on Monday. This came after founders resigned in February amid a regulatory probe into improper stock purchases.
The Newark, California-based Lucid Motors has suffered a steep drop in its own stock price, yet it has continued to increase its hiring numbers based on available data.
