Tesla has reportedly laid off more than half of the workforce from its first battery assembly line at its Shanghai factory. The majority of the laid-off employees will receive compensation, while a small portion will be reassigned to other positions within the company. The equipment used in the first assembly line will either be dismantled or relocated. Sources indicate that fired workers may receive a one-time compensation ranging from RMB 20,000 ($2,762) to RMB 40,000 ($5,524). Some internal employees attribute the job cuts to US policies prohibiting subsidies for batteries imported from China and requiring the use of domestically manufactured batteries, leading to canceled export orders and excess production capacity at the factory. Tesla’s move has also impacted its suppliers, including Chinese EV battery maker CATL and South Korean firm LG Chem, which operates a factory in Nanjing, China. As Tesla sees a reduction in battery orders, these suppliers are adjusting their production plans and equipment investments. CATL is reportedly shifting its focus towards the energy storage sector, while LG is seeking other customers. [IT Home, in Chinese]