Tesla (NASDAQ:TSLA) CEO Elon Musk has undertaken another round of layoffs at the electric vehicle (EV) maker. The firm’s latest job cuts will impact “hundreds” of its employees. Among those leaving the firm as a result of these layoffs are two high-profile executives and its entire Supercharger team. TSLA stock is falling over 3% in early trading after soaring 15% yesterday.
The layoffs were disclosed in an email to the automaker’s senior managers per The Information.
Hundreds of Employees, Including Two Key Executives, Have Been Dismissed
The senior director of Tesla’s Supercharger unit and the head of its new vehicles program are both slated to end their tenures at the EV maker this morning. Moreover, all of those who worked for those executives, including the approximately 500 employees in the company’s Supercharger unit, will be laid off. The company’s Superchargers are fast chargers deployed throughout the U.S. and many other countries.
Musk wrote in an email to the firm’s senior managers: “Hopefully, these actions are making it clear that we need to be absolutely hard core about headcount and cost reduction.”
Excitement About Tesla’s China Deal
Yesterday, TSLA stock soared largely because of a deal that Musk made with Chinese tech giant Baidu (NASDAQ:BIDU). Under the agreement, Baidu, which has also developed self-driving software, will provide Tesla with mapping data.
The agreement came after Musk traveled to China last weekend, and the deal is seen as paving the way for Tesla to launch its Full Self-Driving (FSD) system in China. Indeed, one of the reasons that Musk visited Beijing was to obtain its backing for such a deployment.
The Price Action of TSLA Stock
Heading into today, TSLA stock had jumped 34% over the preceding five trading days, but it was down 22% so far in 2024.
On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
