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Tesla employees concerned over potential large-scale layoffs- reports

Published 04/14/2024, 11:35 PM
Updated 04/14/2024, 11:35 PM
© Reuters

Investing.com-- Tesla Inc (NASDAQ:TSLA) employees are concerned that the electric vehicle maker is planning to lay off a large portion of its workforce as it grapples with worsening sales, separate reports from Business Insider and Electrek showed. 

Both reports showed that rumors were circulating around Tesla’s offices- specifically the Texas Gigafactory- that the EV maker could announce the layoffs by as soon as this week. Workers were also concerned about layoffs at the Fremont factory.

The Electrek report said that the layoffs could be as high as 20%, while Business Insider reported that Tesla had already shortened production shifts for the Cybertruck.

The reports come as the world’s most valuable automaker clocked a sharp drop in first quarter deliveries, amid weakening demand and increased competition in China, one of its biggest markets.

Global EV demand was seen easing as customers scaled back big purchases in the face of worsening economic conditions. A resurgence in the popularity of hybrid models over the past year was also seen eating into EV demand. 

Tesla was seen instructing managers earlier this year to identify the most vital roles in the company. The EV maker had also reportedly delayed some performance reviews.

Tesla had slashed the prices of its vehicles over the past year, specifically in China, to help spruce up demand. But this provided only a limited boost to sales. 

The EV maker set weaker production targets for 2024 in the face of softer demand, and had reportedly also canceled plans for a low-cost EV. 

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But Tesla has also touted plans for a greater push into self-driving and artificial intelligence technology to offset this decline. CEO Elon Musk recently said that the EV maker’s first robotaxi will be unveiled in August this year.

Musk has also largely blamed the sales downturn on high interest rates and a weaker global economy. 

Latest comments

Hire AI to replace the lay.off employees.....a chip.for.an employee.....since the analysts claimed AI will be the future of mankind
And not forgetting promote Tesla to AI to buy.......
Now is the time to go all in. Shares. Not calls. Buy and hold forever. FSD is exponentially growing in popularity. Margins are 99%. Even though it is level 2, it is quite advanced. Once they license it, Ford will be the first to jump on board. All other automakers will follow suit. Robotaxis will also be a huge catslyst. When Musk mentions on the earnings call that the low cost car plans are still on track that will get the ball rolling. Short interest over past week is quite high relative to average. My guess is that any supply glut will be utilized for robotaxis. Never bet against Musk.
Really good news for tesla, margin will increase a lot
Without people, you don't produce and therefore can't cover for the high fixed costs of this industry. You don't pay a gigapress by reducing shifts.
Short term Puts then long term calls. Cant lose. They just need model refresh/redesign. Will get people buying again. The cyberteuck was a joke. Ugliest thing on the road. Imo
Way too much option premium
Musk doesn't care if leftists don't buy his cars. He is the richest person on the planet. Fascist communists who hate free speech and think men should be allowed in women's bathrooms if they say they are women are not going to cause him to change his beliefs just to sell them cars. Plus, most leftists will buy a Tesla even if they pretend they hate Musk. Same way they still use Twitter.
Facts
Fake news.
paralelly with layoffs also the subsidies should be recalled
Tesal days in China most likely go numbered, Chinese people prefer local brands, and the shift has changed. Everywhere else the competition rising. That does not mean it will go bankrupt, just sales will stagnate and stock is wat overpriced based on that.
Musk fails to understand that majority of US EV buyers are politically Left and he's pushed them away. He also fails to comprehend the potential sales of a low end EV to the mass of customers without deep pockets. Instead he concentrates on areas most consumers care very little about - robots, self-drive, and now robotaxis. Tesla needs a CEO replacement.
Still fully invested in Tesla, Elon has the greatest to loose or gain! He needs the stock to go back up or he will face margin calls! Delaware Judge blocked his 2008 $56 billion pay package and the plaintiff’s attorney asking for $6 billion for 5 days work on the litigation win!
you might want to look at a hedging strategy using options to protect your gains and create possible income from your position.
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