Streetbeat News

Labor Issues

TSLA

Tesla shares are trading lower due to reports of a 10% global workforce reduction and the departure of two executives.

Portfolio Pulse from Benzinga Newsdesk

April 16, 2024 | 1:55 pm

TSLA

Tesla Inc (NASDAQ:TSLA) shares have fallen about 9% over the last week, with a 5.59% drop on Monday following reports of planned workforce reductions exceeding 10%. The decline was exacerbated by the departure of key executives Drew Baglino and Rohan Patel. GLJ Research analyst Gordon Johnson maintained a Sell rating on Tesla, lowering the price target from $23.53 to $22.86, citing potential negative free cash flow and issues like excess production and waning demand. Tesla faces challenges with slowing demand and disappointing quarterly results, with investors keenly awaiting the upcoming earnings report for insights into the company's future strategy and outlook.

Portfolio Pulse from Adam Eckert

April 16, 2024 | 1:29 pm

ACES

QCLN

RIVN

TSLA

Rivian Automotive, Inc. (NASDAQ:RIVN) shares are trading lower in the premarket session after a significant 8% drop in the previous session, influenced by news of Tesla, Inc. (NASDAQ:TSLA) considering workforce reductions. Rivian's stock has declined over 38% in the past year but remains accessible through ETFs like ALPS Clean Energy ETF (NYSE:ACES) and First Trust NASDAQ Clean Edge Green Energy Index Fund (NASDAQ:QCLN). Rivian is preparing to announce its Q1 financial results and has reaffirmed its annual production guidance of 57,000 vehicles, focusing on cost efficiency for fiscal 2024.

Portfolio Pulse from Nabaparna Bhattacharya

April 16, 2024 | 11:18 am

FHTX

Foghorn Therapeutics announces the appointment of Kristian Humer as its new Chief Financial Officer. This strategic move aims to strengthen the company's financial leadership as it progresses in its drug development endeavors.

Portfolio Pulse from Benzinga Newsdesk

April 16, 2024 | 11:09 am

TSLA

Tesla's Director of Autopilot Software, Ashok Elluswamy, has received a company-affiliated tag on X, indicating a potential leadership shift following the resignations of senior executives Drew Baglino and Rohan Patel. This development occurs amidst Tesla announcing layoffs affecting over 10% of its workforce as part of a cost-cutting measure to prepare for future growth. Other Tesla executives, including Franz von Holzhausen and Tom Zhu, also have Tesla-affiliated tags on X, while CEO Elon Musk's tag reflects his role as Chair of X Corp.

Portfolio Pulse from Anan Ashraf

April 16, 2024 | 10:01 am

HSBC

Bloomberg reported that HSBC has cut a dozen investment bankers in Asia due to a slump in deals. This move reflects the bank's response to the current market conditions in the region.

Portfolio Pulse from Charles Gross

April 16, 2024 | 9:37 am

TSLA

Tesla, Inc. (NASDAQ:TSLA) shares are facing a potential third consecutive session decline, premarket trading shows a 1.98% drop to $161.48. This downturn is attributed to concerns over significant layoffs, including high-profile executives, which erased about $30 billion from its market cap. The upcoming Q1 earnings report and rumors of halting a sub-$30,000 electric car project have also contributed to negative sentiment. Additionally, weak insurance registration data in China could further impact Tesla's stock.

Portfolio Pulse from Shanthi Rexaline

April 16, 2024 | 9:23 am

FXI

SPY

TSLA

Reuters reported that Tesla is implementing global job cuts that are impacting its China sales team, according to sources. This move could affect Tesla's performance in the Chinese market, which is a significant market for electric vehicles.

Portfolio Pulse from Charles Gross

April 16, 2024 | 8:57 am

TSLA

Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk has indicated a strategic shift towards 'wartime CEO' mode, focusing on the robotaxi project after laying off over 10% of the global workforce. The layoffs aim to reduce costs and eliminate duplicate roles amid Tesla's faltering fundamentals since 2022. Senior executives Drew Baglino and Rohan Patel have departed, and projects, including a cathode factory at Giga Texas, have been dropped in favor of the robotaxi initiative. Tesla's workforce has significantly increased over the years, but its revenue per employee in 2023 was lower than competitors like GM and Ford. Amidst this, Tesla is preparing to unveil its robotaxi on August 8, despite concerns over the cancellation of a low-cost electric vehicle project.

Portfolio Pulse from Anan Ashraf

April 16, 2024 | 7:29 am

EWU

U.K. employment change for February showed a decrease of 156,000 jobs compared to the previous period's decrease of 21,000 jobs.

Portfolio Pulse from Benzinga Newsdesk

April 16, 2024 | 6:06 am