Tesla (TSLA) shares fell 2.7% on Tuesday to their lowest closing level in nearly a year. Shares are now down 8.3% to open the week after the company announced a "more than 10%" staff reduction early Monday.

The continued stock slide for the EV maker follows new revelations of deeper cuts to certain divisions in the company that point to a riskier bet by CEO Elon Musk on robotaxis and autonomous software.

While Musk said in a memo that the “duplication of roles and job functions in certain areas” due to rapid growth necessitated the layoffs, later reports from Tesla sources suggested the cuts were well over 10% and hit certain divisions harder. Reuters reported “heavy layoffs” in Tesla’s service center division, China sales team staff, and of at least 140 engineers in the US.

EV blog Electrek reported that Tesla used the latest round of layoffs to dispatch several projects that Musk was no longer in favor of, including the lower-cost next-gen EV.

Musk shut down a project known internally as “NV9,” which aimed to build a $25,000 next-gen EV — which some have dubbed the “Model 2” — at Giga Austin. “Instead, Musk asked for all resources to go into the Robotaxi program and, specifically, a new data center to be built in an ongoing expansion at the factory,” Electrek said.

Concurrently, Tesla is building another data center, powered by its Dojo supercomputers, in New York to ramp up its AI efforts for developing its self-driving software, which would be the software backbone of the Tesla robotaxis.

The departure of longtime Tesla exec Drew Baglino also indicates a pivot. As senior vice president of powertrain and energy engineering, Baglino led huge projects at Tesla, including the "4680" battery cell production and cathode facility at Giga Austin, Electrek said. Baglino likely had a hand in the development of the Model 2 as well.

“Baglino is an absolute gut punch loss in our view as he was instrumental in the powertrain and energy initiatives at Tesla and was viewed by many as key to the Model 2 initiative over the next few years,” Wedbush analyst Dan Ives said in a note to investors, adding that the Baglino departure was “very unexpected.”

Investors and analysts believed part of Tesla's big growth story would be its long-rumored next-gen vehicle that would start at around $25,000; however, reports last week suggested Tesla had canceled the vehicle. Musk responded to the report claiming it was false and revealed that a Tesla robotaxi debut would be coming on Aug. 8, though he did not officially address the status of the $25,000 next-gen vehicle. If new reporting is correct, the cheaper next-gen vehicle has been canceled, or at least delayed indefinitely.