Has Tesla Re-prioritized Its EV Goal? A Change In Current Report Says So
Portfolio Pulse from Shivani Kumaresan
Tesla Inc. (NASDAQ:TSLA) has removed its target to sell 20 million vehicles annually from its latest impact report, indicating a shift in focus towards autonomy. The 2023 report highlights environmental impact, water use, and workforce initiatives but omits diversity metrics. Tesla sold 1.8 million vehicles in 2023 and plans to introduce cheaper models by late 2024. The company is also laying off over 10% of its global workforce to cut costs. Tesla stock has lost more than 7% in the last 12 months, and shares are currently trading lower by 2.91% at $174.87.
May 23, 2024 | 5:57 pm
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NEGATIVE IMPACT
Tesla's recent changes and stock performance may affect the Fidelity MSCI Consumer Discretionary Index ETF (NYSE:FDIS), which includes Tesla as a key component.
Tesla's significant presence in the FDIS ETF means that any changes in Tesla's business strategy and stock performance can influence the ETF's overall performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
NEGATIVE IMPACT
Tesla has removed its target to sell 20 million vehicles annually from its latest impact report, indicating a shift in focus towards autonomy. The company sold 1.8 million vehicles in 2023 and plans to introduce cheaper models by late 2024. Tesla is also laying off over 10% of its global workforce to cut costs.
The removal of the ambitious vehicle sales target and the shift towards autonomy may concern investors about Tesla's core business focus. Additionally, workforce layoffs and cost-cutting measures could indicate financial pressures, contributing to the stock's recent decline.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100
NEGATIVE IMPACT
Tesla's shift in focus and recent stock performance may impact ETFs like Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY), which includes Tesla as a significant holding.
As Tesla is a significant holding in the XLY ETF, changes in Tesla's business strategy and stock performance can affect the ETF's overall performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50