"Tesla Is Rumored To Be Preparing A Massive Round Of Layoffs; Tesla Announced To Gigafactory Texas Employees That It Will Shorten Cybertruck Production; Employees Talking About Layoffs As High As 20% Of The Workforce, Which Would Mean Tens Of Thousands Of Employees" - Electrek
Portfolio Pulse from Benzinga Newsdesk
Tesla is rumored to be preparing for a significant round of layoffs, potentially affecting up to 20% of its workforce, amid a challenging quarter with reduced deliveries and increased inventory. The company has also shortened Cybertruck production shifts at Gigafactory Texas and reduced production at Gigafactory Shanghai. These moves come in the context of broader tech industry layoffs and Tesla's own history of workforce adjustments.
April 14, 2024 | 11:10 pm
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Tesla faces rumors of significant layoffs and has reduced Cybertruck production, indicating potential challenges ahead. This follows a quarter with disappointing delivery numbers and an increase in inventory.
The rumors of layoffs, coupled with reduced production and a challenging quarter, suggest potential short-term negative impacts on Tesla's stock price. Layoffs and production adjustments often signal underlying issues such as demand slowdowns or operational inefficiencies, which can concern investors. The significant workforce reduction and inventory buildup specifically highlight operational and demand challenges, likely leading to negative investor sentiment in the short term.
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