Tesla Layoffs: 7% Headcount Cut Comes Down to the 1 Thing It Lacks
Elon Musk hasn’t had the best year as head of Tesla (NASDAQ: TSLA). PR debacles. The feint toward going private. Production and delivery holdups. Even the long-awaited ramp-up past 5,000 Model 3s a week hasn’t quieted the jitters, and share prices have oscillated between highs $380 and lows near $250. At least some of the issues, though, revolved around investors faith that Tesla could sell enough of its cars at a profit to justify its valuation. Given that, the news last week that Tesla was laying off 7% of its workforce in an effort to reduce costs — and the sticker prices of its vehicles — might have pleased investors. Instead, they slashed the share price.
In this segment of the Motley Fool Money podcast, host Chris Hill and Fool senior analysts Andy Cross, Ron Gross, and Jason Moser reflect on Telsas goals, its strengths, and the one key weakness in its business model that led to this layoff.
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