• Tesla has laid off 40 employees that were part of its new marketing team.
  • The workers, based mostly in the U.S. are part of wider layoffs at Tesla.
  • According to CEO Elon Musk, the ads produced were simply too generic.

Just four months after launching a dedicated marketing and growth team in early 2024, Tesla has reportedly abruptly laid off the entire department. This surprising move includes team leaders Alex Ingram and Jorge Milburn, leaving many to wonder if Tesla is hitting the brakes on its previously announced plans for increased brand promotion.

In May 2023, Elon Musk promised investors Tesla would “try out a little advertising and see how it goes.” Following that, Bloomberg reports that Tesla began building a marketing team in January. However, amidst various challenges, the company has now laid off about 40 members of that team. While some marketing staff remain in Europe, the key issue seems to be the team’s output.

More: Tesla Ending Referral Program, Slashes FSD To $8k, And Offers Lowest Model Y Price Ever

According to CEO Elon Musk on X, “The ads were far too generic – could’ve been any car.” For a man who appears to relish going against the grain, traditional ad campaigns likely rubbed him the wrong way. Tesla has long balked at the practice of creating TV, radio, online, or print ads. On top of that, the automaker is in the midst of several major challenges to its position in the market.

Truth to be told, Tesla is facing a rough patch. Sales figures for Q1 2024 show a worrying 13.3% drop compared to last year. To add to the pressure, the much-hyped Cybertruck is grappling with a full-scale recall.

In a further attempt to boost sales, Tesla has slashed prices across its vehicle lineup. This price-cutting spree even extends to the controversial Full Self-Driving software, as the company prepares for a crucial presentation on robo-taxis later this year.

In response to these challenges, it’s laid off over 10 percent of the staff worldwide. According to Bloomberg, Musk actually wanted to cut some 20 percent of the staff, or around 20,000 jobs. It’ll announce its first-quarter earnings on Tuesday, April 23rd. Since the start of the year, Tesla stock has fallen more than 40 percent and is the second-worst performer in the S&P 500 Index.