Tesla's 2024 Stock Drop Widens to 34% as Senior Koon Reportedly Leaves Over Layoffs

• On Monday, Tesla stock continued its 2024 decline, dropping 341 TP3T, with shares down 31 TP3T.

• Monday's drop came after the company said it would lay off 10% workers amid weak demand for electric vehicles.

• Elon Musk, Tesla's chief executive officer, said in a memo that "there is a duplication of roles and job functions in certain areas."

Tesla's share price fell slightly more than 31 TP3T on Monday, extending its year-to-date decline to 341 TP3T, after the company laid off more than 101 TP3T, or more than 14,000 employees.

Tesla's chief executive officer, Elon Musk, on Sunday曏 employees issued a memo announcing that the electric car maker would lay off employees "in certain areas where there is a duplication of roles and job functions."

Two of Tesla's top executives left in the layoffs, including Senior Vice President of Arms Drew Baglino, who leads engineering for the company's battery, motor and energy products. Baglino, who has worked at Tesla for 18 years, often shared the stage with Mars尅 at product launches and co-hosted the company's earnings calls.

The other departing executive is Rohan Patel, who served as Tesla's vice president of public policy and business development for mass media.

Typically, when a company announces layoffs, its stock price rises because investors appreciate the cost-saving measures and expect higher profits in the future.

But Tesla's share price decline following a round of layoffs has been treated cautiously on Wall Street as investors grow increasingly concerned about weakening demand for electric cars.

Earlier this month, Tesla announced first-quarter deliveries that were severely below Wall Street expectations, marking the company's first year-over-year quarterly sales decline since 2020.

"The primary reason for the increase in inventories and decrease in deliveries in the first quarter appears to be a decline in demand for EVs across regions, particularly in North America, where EV sales have been essentially flat since the summer of 2023," Bank of America said in a note last week.

For its part, Mas resonance said in the memo that the layoffs will "enable us to strive for excellence and innovation, and to be eager for the next growth cycle."

This is Tesla's first major layoff since February 2023 when it laid off workers at its Buffalo, New York, factory.

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