Tesla CEO Elon Musk Reacts To Report Of Nio Job Cuts: 'Sounds Like They're Having Tough Times'

Tesla Inc (NASDAQ:TSLA) CEO Elon Musk on Friday reacted to reports of Chinese EV maker Nio Inc (NYSE:NIO) cutting 10% of their staff positions.

What Happened: Nio will cut 10% staff positions in November and might also spin off non-core businesses, Bloomberg reported on Friday, citing an internal letter signed by CEO William Li.

As per the report, the company will eliminate “inefficient” roles and businesses that don’t generate revenue in three years. The company had 26,763 full-time employees as of the end of 2022.

"This is a tough but necessary decision against the fierce competition," Li wrote in the letter as per Bloomberg. "Our journey is a marathon on a muddy track."

Nio did not immediately respond to Benzinga’s request for comment.

Musk Reacts: Musk reacted to the news on X, formerly Twitter, and said, “Sounds like they're having tough times.”

The Chinese EV maker is yet to post a profit despite being founded in 2014. In the second quarter, the company reported a net loss of $835.1 million, an increase of 119.6% from the corresponding quarter of 2022 and total revenue of $1,209.7 million.

The company is yet to reveal its third-quarter results.

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