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Tesla to cut 601 jobs in Bay Area, a sign of more problems for EV maker

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Tesla to cut 601 jobs in Bay Area, a sign of more problems for EV maker

In the fourth straight week of layoff announcements, Tesla said it is now concentrating on reducing staff at its Bay Area facilities as part of a larger move to cut jobs globally.

State filings show that Tesla is planning to lay off 378 employees at its Fremont facilities and 233 at its Palo Alto offices.

The layoffs will occur over a 14-day period starting June 20.

An email to Tesla officials requesting comment was not immediately returned.

The layoffs come as the company struggles with flagging sales, top executives fleeing, a declining stock price and quality problems with the new Cybertruck. The low-cost Model 2 recently promised by Chief Executive Elon Musk also appears to be dead.

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It is not immediately clear which positions are being cut. The San Francisco Chronicle reported they would include technicians, electricians, software engineers, plumbers and athletic trainers.

On April 15, Musk announced in an email to staff that Tesla was cutting more than 10% of its workforce, citing job overlap and the need to reduce costs.

A week later, Telsa said it was laying off 3,332 workers at its facilities and offices in Fremont, Palo Alto, Burbank and Lathrop.

Including the latest cuts, Telsa has announced 3,933 layoffs this year in California.

“As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity,” Musk wrote in the April email.

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“As part of this effort, we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally,” he continued. “There is nothing I hate more, but it must be done.”

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Video: Jury Rejects Elon Musk’s Lawsuit Against OpenAI and Microsoft

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Video: Jury Rejects Elon Musk’s Lawsuit Against OpenAI and Microsoft

new video loaded: Jury Rejects Elon Musk’s Lawsuit Against OpenAI and Microsoft

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Jury Rejects Elon Musk’s Lawsuit Against OpenAI and Microsoft

Elon Musk had accused OpenAI of “stealing a charity” by attaching a commercial company to Open AI, which was founded as a nonprofit. But a jury ruled that the statute of limitations had expired.

“The evidence that Mr. Musk’s lawsuit was an after-the-fact contrivance by a competitor was overwhelming.” “This reminds me of key moments in this country’s history. The siege of Charleston, the Battle of Bunker Hill, these were major losses for Americans. But who won the war? And this one is not over. And to sum it up, I can sum it up in one word: appeal.”

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Elon Musk had accused OpenAI of “stealing a charity” by attaching a commercial company to Open AI, which was founded as a nonprofit. But a jury ruled that the statute of limitations had expired.

By Meg Felling

May 18, 2026

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Five Guys to close two L.A.-area locations

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Five Guys to close two L.A.-area locations

Five Guys will close two Los Angeles-area locations later this month.

The burger chain announced in a recent state filing that its locations in City of Industry and Whittier will close in late May. An outlet in Merced will also close its doors in late June, and one in Hanford will shut down in early July, according to state court filings.

The burger giant is the latest fast-food chain to shutter locations as the industry struggles with rising labor and real estate costs in the state.

The company cited “financial hardship” as a reason for the closures, according to a filing.

Employers are legally required to submit a Worker Adjustment and Retraining Notification, or WARN notice, to alert employers, state and local officials at least 60 days before major layoffs. The initial notices were submitted in late April and early May.

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The chain had steady growth in 2024, but seems to have stumbled in California. It opened 37 new storefronts that year, according to the company’s franchise disclosure document. Yet California stores accounted for eight of the 14 locations that closed that year.

The closures will result in 55 jobs lost across the four locations, according to the WARN notice.

A spokesperson for Five Guys did not immediately respond to a request for comment.

Fast food chains have struggled against rising operational costs and increasingly cost-conscious customers.

California’s economic landscape has further complicated business in the state. While aerospace and defense companies have continued to flock to the state, companies in other sectors, including food, have started to bail out.

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Five Guys ranked 42 in QSR Magazine’s top 50 U.S. restaurants list for 2026 and the number of locations in the country rose by 2% in 2025.

The chain got its start around 40 years ago in Virginia and now operates over 1,900 locations, according to its website.

The restaurant’s website lists over 85 locations in California, including at least 15 storefronts in the Los Angeles area.

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Jury rejects Elon Musk’s lawsuit, sides with OpenAI in bitter feud over AI future

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Jury rejects Elon Musk’s lawsuit, sides with OpenAI in bitter feud over AI future

A federal jury sided with OpenAI and its top executives on Monday in a feud with Elon Musk, who accused them of betraying a shared vision for it to guide artificial intelligence’s development as a nonprofit.

The nine-person jury unanimously found that Musk waited too long to file his lawsuit and missed the deadline for the statute of limitations.

Musk, the world’s richest man, was a co-founder of OpenAI, the company that launched in 2015 and went on to create ChatGPT. After investing $38 million in its first years, Musk accused OpenAI CEO Sam Altman and his top deputy of shifting into a moneymaking mode behind his back.

The jury served in an advisory role, but Judge Yvonne Gonzalez Rogers accepted the verdict Monday as the court’s own and dismissed Musk’s claims.

The trial that began on April 27 in Oakland shed light on the bitter falling-out between the two Silicon Valley titans and the origins of OpenAI, now a company valued at $852 billion and poised to become one of the largest initial public offerings in history.

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The high-profile high-stakes showdown between two of the most powerful companies and leaders in technology was billed as a battle that could change the trajectory of AI.

There were two weeks of testimony from the dueling entrepreneurs and other key players in OpenAI’s history, providing a rare inside glimpse into the company, which evolved from a startup to one of the world’s most influential companies.

Musk had fallen out with his fellow co-founders, then, after OpenAI became arguably the most important company in AI, he decided he was not happy with how the trailblazer was managed after he left.

Musk claimed Altman, the startup’s chief executive officer, and OpenAI President Greg Brockman “stole a charity” by exploiting his early support for an altruistic research project so that they could later get rich by turning into a regular for-profit company.

OpenAI and its leaders said Musk was suing them to gain a competitive advantage for his own startup, xAI.

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Musk was seeking more than $100 billion in damages — to be awarded to OpenAI’s nonprofit arm instead of to himself — as well as the removal of Altman and Brockman.

The case was seen as an existential threat to OpenAI. If the decision had gone the other way, it would have sparked a shakeup that would have destabilized the company just as it is working to ensure the U.S. takes the lead in AI and prepares for a public offering with a valuation approaching $1 trillion.

Associated Press and Bloomberg contributed to this article.

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