Tesla (NASDAQ:TSLA) plans to lay off an additional 601 employees in California, as reported by Reuters. The company has filed a notice with the state government, indicating that these layoffs will likely impact employees at its facilities in Palo Alto and Fremont. According to Tesla’s Worker Adjustment and Retraining Notification (WARN) filed with the State of California, the layoffs are expected to commence during the 14-day period beginning on June 20, 2024.
Tesla Is on a Job Cutting Spree
The company announced last month that it would slash 10% of its global workforce amid declining sales and rising competition. The EV maker has done multiple rounds of job cuts since then and according to Reuters, aims to reduce its workforce by 20%. Late last month, the company disbanded its entire Supercharger team and plans to reduce 6,020 people in California and Texas.
Tesla’s Job Cuts: A Demand Issue?
According to the TipRanks Stock Analysis tool, “Bulls Say, Bears Say,” analysts bearish on TSLA have suggested that the company’s decision to lay off its entire Supercharger team and slow down the growth of its Supercharger network indicates “a shift from aggressive expansion, hinting at possible underlying demand issues.”
Is Tesla a Buy, Sell, or Hold?
Analysts remain sidelined about TSLA stock, with a Hold consensus rating based on eight Buys, 15 Holds, and nine Sells. Year-to-date, TSLA has declined by more than 25%, and the average TSLA price target of $173.29 implies a downside potential of 2.4% from current levels.
