Tesla China is rehiring employees affected by layoffs, mainly from sales and service, facing challenges due to some being hired by competitors like Nio's Onvo brand.
CEO Elon Musk cited the necessity of the layoffs (~14% of global headcount) for Tesla's efficiency and growth, envisioning new heights for the company in the future.
In China, most laid-off Tesla employees were from sales and service teams, impacting the staffing of Tesla's physical stores which reduced from 8-9 to 5-6 employees.
Optimism within Tesla China has risen with senior VP Tom Zhu's return, noted for personally visiting Tesla's physical stores amidst the rehiring process and Q2 delivery push.
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