SHANGHAI, April 16 (Reuters) - Tesla's global

job cuts are hitting China, the automaker's biggest market after

the United States, affecting staff in teams including sales, two

sources briefed on the matter said.

CEO Elon Musk on Monday told staff in an internal memo seen

by Reuters that the company is laying off more than 10% of its

global workforce, as it grapples with falling sales and an

intensifying price war for electric vehicles.

The two sources said some staff in Tesla's China sales team

were being notified, with one saying more than 10% were losing

their jobs. The second source said other teams were also

impacted.

Tesla China did not immediately respond to a request for

comment. Both sources declined to be named as they were not

permitted to speak to media.

The Shanghai and Beijing local governments did not

immediately respond to requests for comment. Tesla's largest

plant globally is based in Shanghai, while its China head office

is in Beijing.

The cuts come as Tesla is facing increasing competition in

China, the world's largest auto market, where it has been locked

in a fierce price war with rivals led by BYD that

have been rolling out new models at speed.

The global cuts are a sign of cost pressures as Tesla

invests in new models and artificial intelligence, analysts at

Gartner and Hargreaves Lansdown said on Monday.

Tesla reported this month that its global vehicle deliveries

in the first quarter fell for the first time in nearly four

years.