Tesla’s Texas factory workforce reportedly shrunk 22% in 2025

Tesla’s workforce at its Austin, Texas factory shrank dramatically last year. The company employed 21,191 people there in 2024, but only 16,506 in 2025. This 22% drop came as Tesla suffered its second straight year of declining sales. Interestingly, Tesla’s global workforce actually grew during this period, from 125,665 to 134,785 employees. It is unclear which teams at the Austin plant were most affected. Since opening in 2022, the factory has become one of the area’s largest employers. CEO Elon Musk moved Tesla’s headquarters there in 2021. The company has invested over $6.3 billion in the facility to date.