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Elon Musk apologises for his inadequate severance pay.

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Elon Musk, CEO of Tesla, has sent an email to his employees apologizing for the “incorrectly low” severance packages that some recently laid-off employees received. This comes after Tesla announced a 10% reduction in its workforce, affecting approximately 14,000 employees based on 2023 year-end data. Musk acknowledged the discrepancies in the severance packages and assured employees that the issue is being promptly rectified.

Some employees who were laid off earlier in the week received a severance package equivalent to two months’ pay, which falls short of the minimum requirement set by the Worker Adjustment and Retraining Notification Act. The act mandates a 60-day notice and pay for employees affected by mass layoffs in companies with over 100 employees. Employees were reportedly informed of their termination if their ID badges ceased to function.

Tesla justifies the recent layoffs as a strategic move to position the company for future growth phases. However, Reuters previously indicated a shift in Tesla’s strategy, with plans to abandon a previous initiative for a more affordable electric vehicle in favour of prioritizing robotaxi development. Musk refuted the Reuters report but refrained from confirming any specific timeline for the project’s launch.

Meanwhile, Tesla is set to enter the Indian market, with Musk scheduled to meet with Prime Minister Narendra Modi in New Delhi on April 22. The company aims to establish its manufacturing presence in India, which has been hindered by high import duties on luxury cars. In response to this barrier, the Indian government has announced significant revisions to its electric vehicle policy to incentivize foreign companies to establish manufacturing facilities within its borders.