Tesla shares Ilona Mask’s plans to cut the workforce

Elon Musk during an event at SpaceX headquarters in Hawthorne, California, USA, on Thursday, October 10, 2019.

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Tesla shares fell more than 9% on Friday due to news that CEO Elon Musk plans to freeze hiring and cut 10% of jobs at his plant for the production of electric vehicles and renewable energy sources.

On Thursday night, Reuters reported that Musk had sent Tesla executives an e-mail saying he had a “super bad feeling” about the economy, and he called for job cuts.

The post-news report Musk requires all Tesla and SpaceX employees to stop remote work and report the location to the main office at least 40 hours a week.

According to the annual financial documentation, Tesla and its subsidiaries as of the end of 2021 employed 99,290 people worldwide.

Tesla shares have fallen more than 25% this year amid broader sales in technology.

Like other automakers, Tesla has dealt with shortages of parts and supply chain problems exacerbated by the Covid pandemic and Russia’s brutal invasion of Ukraine.

But Tesla is also trying to recover from the impact of Covid’s tough locks in Shanghai, where its plant is located in China, which has significantly hampered car production.

On Friday, Cowen capital researchers cut their supply estimates for Tesla for the second quarter, citing China’s influence. Deliveries are the closest approximation to sales figures reported by the company.

Managing Director and Senior Analyst Cowen Jeffrey Osborne wrote in a note on Friday: “China is Tesla’s most profitable facility, so we see that the loss of about 50,000 to 60,000 vehicles also reduces profitability, which will deteriorate as a result intensifying problems in Berlin and Austin for the Model Y. ”Tesla’s new plant outside Berlin opened in March and began boosting production in May.

Cowen also expects Tesla to revise its recommendations below the year – it aims to increase car sales by 50% in 2022. Osborne wrote, “We expect Tesla to point to challenges in achieving its stated goal of about 50% supply growth in 2022. We are now modeling 1.28 million vehicles a year against 1.35 million earlier.”

In addition to worrying about Tesla, Musk is also in the midst of a deal to buy Twitter for $ 54.20 per share, or about $ 44 billion. As Tesla shares fall, some of Mask’s capital resources are declining.

Correction: Tesla’s new plant outside Berlin opened in March. The previous version incorrectly showed the time.

Tesla shares Ilona Mask’s plans to cut the workforce

Source link Tesla shares Ilona Mask’s plans to cut the workforce

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