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Labor Issues

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

TSLA

Tesla Inc (NASDAQ:TSLA) has halved the price of its 'full self-driving' (FSD) subscription to $99 per month, a move that Gene Munster of Deepwater Asset Management believes signals the end of manual driving. This price reduction is part of Tesla's strategy to make its self-driving technology more accessible, amidst a challenging period for the company, including a 10% workforce reduction and a 20% drop in deliveries. Nvidia's Senior Lead of Robotics praised Tesla's FSD feature, while Tesla CEO Elon Musk continues to push boundaries in AI with his venture, xAI.

Portfolio Pulse from Benzinga Neuro

April 16, 2024 | 3:20 am

TSLA

Tesla, Inc. (NASDAQ: TSLA) has reportedly put on hold the development of its proposed $25,000 electric vehicle, known as Model 2 or codenamed NV9, according to Electrek. This decision comes amid a round of massive layoffs, including high-profile executives, and a shift in focus towards the self-driving project. CEO Elon Musk had previously emphasized the importance of the low-cost EV and its production at Giga Texas and Giga Mexico, aiming for a second-half of 2025 start. However, the project's defunding and the layoffs of team members involved raise concerns about Tesla's future growth, particularly as the Model 2 vehicle and its sub-$30,000 price point were seen as crucial for driving mass demand globally.

Portfolio Pulse from Shanthi Rexaline

April 16, 2024 | 2:45 am

TSLA

Elon Musk is urged by Wedbush analyst Dan Ives to explain the rationale behind Tesla's decision to lay off 10% of its global workforce, following a quarter with a 20% drop in deliveries. High-ranking executives have left, and Tesla's stock has fallen 35% since the start of the year. Despite these challenges, Wedbush maintains an 'outperform' rating and a $300 price target for Tesla. The layoffs are part of a broader trend in the tech industry and are seen as a cost-cutting measure by Tesla.

Portfolio Pulse from Benzinga Neuro

April 16, 2024 | 2:09 am

BLOZF

CMPS

IGC

TPB

The cannabis industry is witnessing significant executive changes across various companies, with new CEOs, CFOs, COOs, and board members being appointed. These changes come as the industry prepares for the Benzinga Cannabis Capital Conference in Florida, highlighting the sector's dynamic nature and growth. Notably, U.S.-based cannabis executives' salaries have surpassed the $500,000 mark, indicating the industry's lucrative potential. Companies like Decibel Cannabis, Schwazze, DIZPOT, and others have announced leadership changes, aiming to strengthen their market positions and expand operations.

Portfolio Pulse from Jelena Martinovic

April 16, 2024 | 12:22 am

CMG

DIN

EAT

JACK

MCD

PZZA

QSR

SBUX

WEN

YUM

California's new law mandates a $20 minimum wage for fast-food employees at chains with at least 60 locations nationwide, affecting major companies like McDonald's, Starbucks, and Yum! Brands. Since the law's implementation on April 1, many of these companies have seen their stock values drop. Some are considering cutting hours and raising prices, while others explore automation to offset increased labor costs. Casual dining restaurants could benefit from this shift if they manage to maintain their pricing.

Portfolio Pulse from Natan Ponieman

April 15, 2024 | 9:12 pm

MSFT

Former Microsoft Corp. (NASDAQ:MSFT) Blizzard President Mike Ybarra suggested adding a tipping feature to video games, allowing players to directly tip developers of games they love. The idea has received mixed reactions, with some supporting the direct support to developers, while others are concerned about the potential for platforms to take a cut of these tips. The suggestion comes amid discussions on better supporting developers, including unionization, in the face of industry layoffs and studio closures.

Portfolio Pulse from Franca Quarneti

April 15, 2024 | 8:46 pm

LCID

MULN

NIO

PSNY

EV stocks, including LCID, MULN, NIO, and PSNY, are trading lower due to overall market weakness, Middle East tensions, rising yields, and potential layoffs at Tesla affecting the sector.

Portfolio Pulse from Benzinga Newsdesk

April 15, 2024 | 7:47 pm