Tesla CEO Elon Musk has doubled down on his efforts to reduce costs at the company amidst a decline in sales, and the latest casualty of this initiative is Tesla’s summer internship program. This move has left many students disappointed, as they had already made arrangements for housing and travel in anticipation of the internship.
Josue Avalos Jimenez, a student at North Carolina State University, expressed his disappointment on LinkedIn, stating that his entire summer plan was disrupted after a brief phone call from Tesla. Similarly, Shubham Mahajan, a student at Raymond A. Mason School of Business, described Tesla rescinding his internship offer as a significant setback, especially after he had made all necessary preparations.
These internship cancellations come on the heels of an email from Musk to staff on April 29, announcing layoffs for hundreds of employees and emphasizing the need for stringent headcount reductions. Earlier, Musk had laid off 14,000 employees, citing rapid growth and duplication of roles within the company.
Tesla’s vehicle sales have also taken a hit recently. In its first-quarter earnings report for 2024, Tesla reported a decrease in vehicle sales compared to the previous quarter and the same period last year. The company attributed this decline to various factors, including production ramp-up challenges for the updated Model 3, disruptions caused by the Red Sea conflict, and an arson attack at its Berlin factory.
During an earnings call discussing the report, Musk highlighted the complexity of logistics and acknowledged that the sales process had become overly complicated. He stated that they had simplified the process to ensure a smoother experience for customers.
