Tesla's headcount fell from 21,191 workers to 16,506 workers in 2025, according to a report, as it grappled with its second straight year of declining sales.

The company's deliveries in the first quarter were just 6% higher than last year, and Tesla now faces a third straight year of falling sales.

The company struggled with quality issues when Gravity production started last year, and the new recall shows it's not out of the woods yet.