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Tesla shares are falling as Elon Musk reportedly announces hundreds more layoffs, including senior managers




Tesla shares are falling as Elon Musk reportedly announces hundreds more layoffs, including senior managers
Elon Musk.

Tesla CEO Elon Musk.Antonio Masiello/Getty Images

  • Shares of Tesla fell as much as 5% on Tuesday after reports of more layoffs at the company.

  • The layoffs include senior managers and their teams who oversee the charging infrastructure.

  • The slump erased some gains from the previous day, following optimism around Musk’s surprise visit to China.

Shares of Tesla fell as much as 5.5% on Tuesday, amid reports that Elon Musk announced hundreds more layoffs, including two high-ranking executives.

Shares of Elon Musk’s company were trading 4.7% lower at around $185 each as of 1:40 p.m. in New York. The loss eats into some of Monday’s big gain after the Tesla CEO’s trip to China.

The information reported that layoffs of hundreds of employees include Rebecca Tinucci, who oversees charging infrastructure, and Daniel Ho, a director who oversees vehicle programs and new products.

About 500 people from Tinucci’s division will be laid off, and Tesla’s public policy team is also being cut, as Vice President Rohan Patel left on April 15, according to Musk’s email cited by The Information.

The latest cuts add to Musk’s broad efforts to be “absolutely hardcore” when it comes to employee retention and cuts. reliable test.”

Two weeks ago, Tesla laid off more than 10% of the company’s workforce globally, citing a “duplication of roles and job functions in certain areas.”

After the decline in car sales in the first quarter, the technology giant reported an earnings per share missed consensus predictionsbut delivered the news of a cheaper model that investors wanted to hear.

Tesla stock has fallen almost 30% since the beginning of this yearwhile it The rating and price target were lowered by a number of Wall Street analysts.

Musk boosted investor optimism this week when he made an unexpected trip to China, the EV maker’s second-largest market. The stock rose 12% on Monday in response to his visit, culminating in reports that the company’s full self-driving technology could soon debut in the country.

Read the original article Business insider