Tesla’s (NASDAQ:TSLA) CEO, Elon Musk, surprised legacy automakers with his abrupt decision to lay off 500 employees from its EV charging team. Following the layoffs, Musk stated in a post on X that the EV major was planning to expand its Supercharger network, “just at a slower pace for new locations and with more focus on achieving 100% uptime and expanding existing locations.”
GM and Ford’s Plans with Tesla Still in Motion
These legacy automakers were preparing to utilize the Tesla Supercharger network for new EVs. Despite this, automakers like General Motors (NYSE:GM) and Ford (NYSE:F) who had entered into a deal with Tesla last year to give their customers access to Tesla’s supercharging network are not changing their plans.
GM and Ford confirmed in separate statements that they are maintaining plans to equip their EVs with Tesla-compatible connectors to enable charging at Tesla stations.
Tesla’s Cost-Cutting Efforts
Tesla’s layoffs are a part of its cost-cutting efforts as its Q1 sales declined by 8.5% year-over-year with revenue hitting $21.31 billion. Analysts bullish on TSLA stock seem to approve of its cost-cutting efforts.
According to the TipRanks investment research tool, “Bulls Say, Bears Say” which provides stock analysis insights for investors, analysts bullish on TSLA believe that these reductions in employees could save TSLA more than $1 billion annually.
Is Tesla a Buy, Sell, or Hold?
Analysts remain sidelined about TSLA stock, with a Hold consensus rating based on seven Buys, 16 Holds, and nine Sells. Year-to-date, TSLA has plunged by more than 25%, and the average TSLA price target of $171.99 implies a downside potential of 6.2% from current levels.
