Tesla laying off nearly 700 workers at Nevada Gigafactory

LAS VEGAS ( KLAS ) — Tesla will lay off 693 workers from its Gigafactory in Sparks, according to a notice filed last week with the Nevada Department of Employment, Training and Rehabilitation.

The timing of the announcement coincides with the company’s decision to take $2,000 off the prices of three of its five models sold in the U.S. That announcement came after Tesla’s stock dropped below $150 per share, eliminating all the gains achieved over the past year.

The layoffs have an effective date of June 14, 2024. It’s the biggest layoff in the state so far in 2024, just behind the 744 layoffs that came with the closing of Tropicana Las Vegas on April 2.

Tesla received more than $330 million in tax breaks from the state of Nevada just a year ago as Gov. Joe Lombardo appeared with Tesla founder Elon Musk to announce a $3.6 billion expansion of the Gigafactory. At the time, Lombardo said, “Tesla has far exceeded every promise they made going back to 2014.”

“To date, they have invested $6.2 billion in Nevada, built a 5.4 million square foot Gigafactory which provided 17,000 local construction jobs and created more than 11,000 highly paid permanent jobs,” Lombardo said.

A report on April 15 from The Associated Press said Tesla planned to lay off 10% of its workforce to try to cut costs.

For the latest news, weather, sports, and streaming video, head to KLAS.