NEW YORK, April 15: This morning, Tesla Inc. experienced a decline in its stock shares following the revelation of plans to lay off "more than 10 percent" of its worldwide workforce. The announcement comes amidst growing concerns over waning demand for the company's electric vehicles in an increasingly competitive market.

According to reports from tech publication Electrek on Monday, CEO Elon Musk issued a company-wide email over the weekend, disclosing the impending layoffs. In the internal memo, Musk described the decision as "difficult," emphasizing that the staff reductions are aimed at streamlining operations to foster innovation and readiness for future growth phases.

Tesla's move comes on the heels of a recent decline in vehicle deliveries during the first quarter, marking the company's first such drop in nearly four years and falling short of market projections. With its quarterly earnings report scheduled for April 23, Tesla faces mounting pressure to address the factors contributing to its performance downturn.

In a press release, Tesla attributed the decline in deliveries to multiple factors, including weakening demand for electric vehicles, an arson attack at its factory near Berlin, and supply chain disruptions resulting from the conflict in the Red Sea region.

Reports of an impending layoff had circulated in recent months, with indications such as Tesla's directive to managers to identify key team members, suspension of certain stock rewards, and cancellation of annual employee reviews, as reported by sources.

As Tesla navigates these challenges, investors and industry analysts await further developments and insights into the company's strategies for revitalizing its performance in the face of evolving market dynamics.