Tesla to lay off nearly 2,700 workers at its Texas 'Gigafactory' - where it makes the Model Y and Cybertruck

Tesla will lay off 2,688 employees working at its Texas factory, the EV maker revealed in a compulsory notice to the state.

It comes just a week after the company said it would lay off 10 percent of its global workforce of around 140,000 employees, including almost 300 in Buffalo, New York.

Tesla's 'Gigafactory' in Austin, Texas, is the manufacturing facility for the company's Model Y and Cybertruck. Tesla's notice said that the layoffs will start on June 14.

The layoffs come just hours ahead of the company's quarterly earnings call on Tuesday, which will be live-streamed to X and during which it is expected to discuss its worst results in seven years.

Cybertrucks are lined up at Tesla Giga Texas on Tuesday April 2, 2024.

Tesla CEO Elon Musk will address investors during the company's quarterly earnings call on Tuesday at 4.30pm CT

Tesla is coming under pressure from falling sales and an intensifying price war with Chinese EV makers. 

CEO Elon Musk will host the call at 4.30pm CT and attempt to assuage investors' concerns that the company is heading for a catastrophe.

As of Tuesday, it was the second-worst performer in the S&P 500 this year. Its share price was down 41 percent to $145 - well below its all-time high of $410 in 2021.

After news of the Texas layoffs, its share price was up more than two percent from when markets opened. 

Fueling the crisis at Tesla is reduced demand for EVs in the US, a price war with increasingly capable Chinese electric car makers, and a wave of issues surrounding its newly released Cybertruck.

As of Tuesday, Tesla was the second-worst performer in the S&P 500. Its share price was down 41 percent to $145

Last week the automaker recalled nearly 4,000 Cybertrucks in order to fix an accelerator pedal fault that could cause the EV to accelerate at top speed.

This month alone Tesla also announced it was laying off 10 percent of its staff and reported its global vehicle deliveries in the first quarter fell for the first time in nearly four years. 

It was also reported the company had abandoned plans to make the so-called 'Model 2' - a budget $27,000 car that it was hoping could capture the mass market. 

Musk said instead the company would focus on developing self-driving robo-taxis.