The Globe and Mail reports in its Saturday edition that the electric-vehicle faithful swallowed a bitter pill last week when Tesla finally said it will lay off 10 per cent of its work force, more than 14,000 people, because of slowing global demand. The Globe's Gus Carlson writes that Tesla's deliveries have dropped for the first time in four years, and unsold inventory has swelled to almost 50,000 vehicles. Tesla's stock tumbled on the news, and rumours circulated that the summer launch of its highly anticipated $25,000 (U.S.) car, meant to compete with low-priced Chinese EVs, would be delayed. The glimpse into Tesla's mortality was a blow to even the most devout EVangelists. While it may be true that the sky in not yet falling, the bad news out of Austin, Tex., reflects more than a recalibration for Tesla. It is a reckoning that people such as Toyota chairman Akio Toyoda have predicted for some time: EVs will not dominate the global car market, and the sector may already be testing its limits. For those who have been paying attention, the cooling reflected in the Tesla layoffs should come as no surprise. Cracks appeared last summer when U.S. car dealers reported that almost 100,000 unsold EVs had piled up on their lots.
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