AlphaAtlas
[H]ard|Gawd
- Joined
- Mar 3, 2018
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In an open letter to employees, Tesla announced plans to cut their workforce by about 7% this morning. The letter written by Elon Musk notes that they grew by 30% last year, suggesting that Tesla may have expanded a little too quickly, and that the staff cut is necessary for Tesla to meet its low Model 3 price targets. Naturally, stockholders reacted negatively to the announcement, and the stock dropped about 10% this morning. Bloomberg notes that this is just another line in the wild history of Tesla's stock price, as it has been extremely volatile over the past 2 years. One of Elon Musk's other companies, Space X, announced plans to lay off about 10% of their staff last week, but that company isn't publicly traded yet. Thanks to YeuEmMaiMai for the tip.
However, some bullish analysts said the job cuts were part of “business as usual,” and a sign that Tesla is trying to rein in its spending. The relentless bull-bear debate on Tesla has recently been focused on how the company would tackle the gradual phase out of a federal incentive on electric cars that had helped to boost the demand for the company’s cars.
However, some bullish analysts said the job cuts were part of “business as usual,” and a sign that Tesla is trying to rein in its spending. The relentless bull-bear debate on Tesla has recently been focused on how the company would tackle the gradual phase out of a federal incentive on electric cars that had helped to boost the demand for the company’s cars.