February 8, 2023

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Tesla Stock Slides As Musk Gets ‘Super Bad Feeling’ On Economy

2 min read

Tesla stock fell on Friday after CEO Elon Musk reportedly said the electric-auto maker would need to cut around 10% of its workforce and regulators stepped up scrutiny over the company following more complaints that its cars were abruptly stopping while in use.



Musk’s remarks about the job cuts were made in an email to executives, Reuters reported. In the email, reportedly sent Thursday with the title “pause all hiring worldwide,” he said he had a “super bad feeling” about the economy.

It was unclear whether plans for any cutbacks would actually be put in place. Tesla did not immediately respond to a request for comment. The company and its subsidiaries had 99,290 full-time employees as of last year, according to its annual report.

The report from Reuters arrives as China’s zero-Covid policy strains production at Tesla’s factory in Shanghai. Cowen analysts who follow Tesla stock, in a research note on Friday, cut their estimates for second-quarter deliveries to 242,000, from 309,400.

However, as Reuters noted, demand for Tesla’s electric vehicles and those from other manufacturers has held up. And the report noted that other signs of weakening auto demand, like more cars on dealer lots and more incentives, have yet to emerge.

Tesla Stock Falls

Tesla stock slid nearly 9% in the stock market today. Shares were still in a double-bottom base with an 1152.97 buy point.

Along with Musk’s email, the National Highway Traffic Safety Administration on Friday said it was seeking more information from the automaker, after receiving 758 reports of “unexpected brake activation” — often described as “phantom braking” — in some 2021 and 2022 Model 3 and Y vehicles.

The request was dated May 4. Tesla has until June 20 to respond. The agency is asking for, among other things, information on the number of those vehicles Tesla has made in the U.S., and related customer complaints, crash and damage reports, documents and other data.

The NHTSA in February opened a…

2022-06-03 14:23:02

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