Tesla Layoffs Have 'Far-Reaching Impact,' Shares Extend Decline, Analysts Weigh In

Tesla shares extended losses on Tuesday to near their lowest level since last spring after the group made its biggest layoffs ever, raising questions among analysts and investors about the long-term growth prospects of one of the market's most popular stocks.

Austin Electric Vehicle Group (TSLA) At the same time, Elon Musk, the Chief Executive Officer of the company, has been working on the development of a new product. ) The layoff plan was announced in a company-wide memo he wrote, telling employees that it was time to "streamline the company for the next 堦half of its growth."

"As we prepare for the next phase of our company's growth, it is extremely important that we try to cut costs and improve productivity," said K. Mas reson. As part of this effort, we conducted a thorough review of the organization and made the difficult decision to lay off more than 10% worldwide."

The layoffs, which could total around 14,000 people, also include two key executives: Drew Baglino, who heads Tesla's battery division, and Rohan Patel, who is vice president of public policy.

Shares of Tesla have continued to fall since the company announced lower-than-expected first-quarter profits in early February. The report included narrowing margins and a warning that full-year deliveries of mass will be "significantly lower" than in 2023.

Deliveries also disappointed investors, with the group delivering 387,000 new vehicles to customers in the three months through March. That's down 20% from the record 484,000 vehicles delivered in the final months of last year, and the biggest miss for Wall Street since it began compiling data in the mid-2010s.