Tesla Interns Face The Heat Of Musk's Budget Squeeze
Portfolio Pulse from Shivani Kumaresan
Tesla Inc (NASDAQ:TSLA) has rescinded internship offers due to budget constraints, leaving many students in a difficult position. The company's decision is part of broader cost-cutting measures, including a 10% global workforce reduction announced by CEO Elon Musk. This comes amid concerns over declining electric vehicle sales and high expenditures, with Tesla reporting an 8.5% year-on-year decline in first-quarter deliveries. The company also plans to slow down the expansion of its supercharger network. Despite these challenges, Tesla stock has gained over 12% in the last 12 months, and investors can gain exposure to Tesla through ETFs like the Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) and Fidelity MSCI Consumer Discretionary Index ETF (NYSE:FDIS).
May 02, 2024 | 3:04 pm
News sentiment analysis
Sort by:
Descending
NEUTRAL IMPACT
The Fidelity MSCI Consumer Discretionary Index ETF offers another avenue for investors to gain exposure to Tesla's stock, which has seen a 12% increase over the past year.
FDIS, like XLY, offers indirect exposure to Tesla and its performance. The recent negative news around Tesla may not significantly impact FDIS in the short term, given the diversified nature of the ETF.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Investors can gain exposure to Tesla, which has gained over 12% in the last 12 months, through the Consumer Discretionary Select Sector SPDR Fund.
While Tesla faces challenges, its stock has shown growth over the past year. The XLY ETF, which includes Tesla, may not be directly impacted by the internship cancellations but reflects broader exposure to Tesla's performance.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Tesla rescinds internship offers as part of cost-cutting measures, including a 10% workforce reduction, amid declining EV sales and high expenditures.
The cancellation of internship offers and workforce reduction are direct actions by Tesla to manage costs amid financial pressures. These measures, along with declining EV sales, could negatively impact investor sentiment and Tesla's stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100