Tesla Inc's deliveries have declined by 8.5% in the first quarter, marking the company's first drop in four years.

The company has cut 10% of its workforce citing reasons such as job duplication from rapid growth, cost cutting needs, and a push for increased productivity.

Key engineering leaders Drew Baglino and Rohan Patel have left Tesla, amid delays in projects like the 4680 battery cell production and the cathode factory.

Tesla is pivoting its strategy to focus on fully self-driving cars and is moving away from plans to create a lower-cost EV, instead aiming to develop a robotaxi.

CEO Elon Musk has shown appreciation for the contributions of the departing employees and remains committed to advancing groundbreaking technologies.

There remains market potential for Tesla in the budget electric vehicle segment in the U.S. and Europe despite the current setbacks.

Investors are looking forward to Tesla's Q1 earnings report on April 23 to gain insights into the company's strategic direction in the competitive electric vehicle market.