The email, which was obtained by CNBC, stated, "As we reorganize Tesla it has come to my attention that some severance packages are incorrectly low. My apologies for this mistake. It is being corrected immediately."
The specifics of the severance packages for the dismissed employees were not immediately available. The number of employees who received incorrect severance packages is also unclear. However, it is known that Tesla, which has a global workforce of 140,000, reduced its staff by approximately 10%. Representatives for Tesla have not yet responded to requests for comment.
In an internal memo sent earlier this week, Musk justified the layoffs as a necessary step to prepare Tesla for its next growth phase. The layoffs were effective immediately. Musk also commented on his own platform, stating, "About every five years, we need to reorganize and streamline the company for the next phase of growth."
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In related news, two senior executives at Tesla announced their departures from the company this week. Drew Baglino, senior vice president in charge of battery development, and Rohan Patel, vice president for public policy and business development, both announced their exits. Baglino was one of four members of Tesla's leadership team listed on the company's investor relations website. Musk thanked both executives for their contributions in responses to their respective announcements.
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Despite these changes, Musk did not confirm whether Tesla will continue to follow the "master plan" he laid out in 2023. This plan proposed a path to a sustainable global energy economy through end-use electrification and sustainable electricity generation and storage.
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Musk emphasized the importance of cost reductions and productivity increases across all aspects of the company. He has also requested that Tesla's shareholders re-vote on his $56 billion compensation package. This package, the largest of its kind in corporate America, was approved by investors in 2018 but was voided by Delaware’s Court of Chancery Judge Kathaleen McCormick earlier this year. McCormick described the sum as "unfathomable."
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In a proxy filing, Tesla also announced plans to ask shareholders to vote on whether the company should move its state of incorporation from Delaware to Texas, where the company is currently based. This topic, along with others, is expected to be discussed at Tesla's annual meeting on June 13.
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Tesla Chair Robyn Denholm has already expressed support for Musk, criticizing the Delaware court's decision in the proxy. Denholm stated, "Because the Delaware Court second-guessed your decision, Elon has not been paid for any of his work for Tesla for the past six years that has helped to generate significant growth and stockholder value. That strikes us – and the many stockholders from whom we already have heard – as fundamentally unfair, and inconsistent with the will of the stockholders who voted for it."
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