Tesla layoffs send shares down on concerns about weakening demand

Tesla CEO Elon Musk announced layoffs of more than 10% of the global workforce, resulting in a nearly 6% drop in the company’s stock price. This decline adds to the woes of Tesla, which has seen a 29% decrease in the first quarter of 2024. The company has been facing challenges in the EV market, with competition from domestic makers in China and price cuts affecting margins. Analysts are concerned about demand issues and have reduced price targets for Tesla’s shares. Additionally, key executives at Tesla have announced their departure, further adding to the uncertainty surrounding the company. Musk’s involvement in various ventures outside Tesla has also raised questions about his focus on the electric vehicle maker.

Tesla CEO Elon Musk announced that the company will be cutting more than 10% of its global workforce, leading to a nearly 6% drop in the company’s stock price. This marks a departure from previous instances where stock prices rose following layoffs. The announcement comes amid a challenging period for Tesla, with declining vehicle deliveries, increased competition in the EV market, and concerns about demand. Executives Drew Baglino and Rohan Patel are also leaving the company. Analysts and investors are questioning Tesla’s ability to maintain growth, particularly in light of Musk’s other ventures and unpredictable behavior.

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