Categories Consumer, U.S. Markets News

Tesla’s stock plummets on news of job cuts and lower Q4 profits

Tesla Inc. (TSLA) saw its shares plunge over 7.9% in premarket hours on Friday after the company announced that it was going to lay off 7% of its workforce in an effort to cut costs. In an email to employees, CEO Elon Musk said the company is attempting to make the Model 3 sedan more affordable for its customers.

Tesla has more than 45,000 employees so the 7% reduction would affect over 3,000 employees. This is the company’s second workforce reduction in a couple of months. Last June, Tesla reduced its workforce by 9% in order to reduce expenses.

Musk said that apart from the cost reductions, Tesla has to increase its Model 3 production rate and improve engineering in order to be able to sell the Model 3 at an affordable price and to sustain itself as a company.

Tesla fast-tracks China program with plans to start delivery in March

Musk indicated that Tesla will continue its profitable streak in the fourth quarter as well after the third quarter but hinted that the fourth-quarter profits would be slightly lower than the third quarter.

The cheapest version of the Model 3 is priced at $44,000 and Tesla has not yet been able to offer the sedan at the intended price of $35,000. The company is looking to make the Model 3 more affordable as soon as it can before the US federal tax credit on electric vehicles ends this year.


Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips.

Most Popular

HOG Earnings: Key quarterly highlights from Harley-Davidson’s Q4 2022 financial results

Harley-Davidson, Inc. (NYSE: HOG) reported fourth quarter 2022 earnings results today. Revenue increased 12% year-over-year to $1.14 billion. Net income attributable to Harley-Davidson, Inc. rose 94% YoY to $42 million,

After positive Q4, Advanced Micro Devices (AMD) looks at a mixed 2023

Advanced Micro Devices, Inc. (NASDAQ: AMD) this week issued a cautious outlook for the first quarter of 2023, after reporting stronger-than-expected fourth-quarter results. The chipmaker did not provide full-year guidance,

META Earnings: All you need to know about Meta Platforms’ Q4 2022 earnings results

Meta Platforms, Inc. (NASDAQ: META) reported fourth quarter 2022 earnings results today. Revenue declined 4% year-over-year to $32.17 billion. Net income fell 55% to $4.6 billion while EPS dropped 52%

Add Comment
Viewing Highlight