Elon Musk apologized for 'incorrectly low' Tesla severance packages

Elon Musk wearing a suit and bowtie whilst shrugging with his hands in the air
Elon Musk is the CEO of Tesla.Taylor Hill
  • Elon Musk apologized Wednesday to laid-off Tesla employees for incorrect severance packages.

  • The rare apology came after the EV maker said at least 10% of its workforce was being laid off.

  • Some workers previously told Business Insider they were offered two months' pay as severance.

Elon Musk apologized in an email to some laid-off Tesla employees after their severance packages were found to be "incorrectly low," according to a screenshot of the email viewed by Business Insider.

"As we reorganize Tesla it has come to my attention that some severance packages are incorrectly low," Musk said in the brief email sent Wednesday. "My apologies for this mistake. It is being corrected immediately."


The email was first reported by CNBC.

Some employees were offered two months of severance, five laid-off workers previously told BI. Other workers told BI that as of Wednesday night, they'd yet to receive any information about severance packages.

Sixty days' pay is the minimum that companies with more than 100 employees must give laid-off workers if there's no 60-day notice period before mass job cuts, according to the Worker Adjustment and Retraining Notification Act.

The Tesla CEO sent an all-hands email Sunday night announcing the automaker was cutting more than 10% of its workforce. Some employees learned they'd been affected only after turning up for work on Monday. Some were told by security that if their ID badges didn't work, they no longer had jobs.

The mass layoffs come as Tesla faces a sharp slowdown in sales and rising competition from domestic manufacturers in China, its most important market outside the US.

Tesla lost some senior executives amid the cuts. Drew Baglino, who'd been with the company for 18 years and was most recently its head of powertrain and electrical engineering, said Monday he'd made the "difficult decision" to leave.

Rohan Patel, the vice president of public policy and business development, also announced his exit on Monday.

Musk is also grappling with lawsuits filed by four former executives of Twitter, now X. They're suing him for $128 million in unpaid severance. The plaintiffs, who were fired after Musk's Twitter takeover in 2022, are former CEO Parag Agrawal; Ned Segal, the company's former chief financial officer; Vijaya Gadde, its former legal chief; and Sean Edgett, its former general counsel.

Tesla didn't immediately respond to a request for comment made outside normal working hours.

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Read the original article on Business Insider