Tesla may announce large workforce layoffs this week

Shares of Tesla will be in focus later after Electrek reported that Tesla could announce large layoffs this week.

The company announced that it will shorten its Cybertruck production shift in a sign that the new model is turning into something of a disaster. Earlier this month there were reports that there is no longer any wait for one of the futuristic trucks.

The bigger problem is that Tesla has no new models and might not have any until 2026 or longer if the cheap sedan is truly scrapped.

Electrek earlier reported:

We received several reports today from Tesla employees hearing rumors
of an important round of layoffs happening this week at the company.

Some of them are talking about layoffs as high as 20% of the workforce, which would mean tens of thousands of employees.

Shares of Tesla are near the bottom of the S&P 500 this year, down more than 30%.

They are up 0.3% in the pre-market but given the valuation of Tesla, it will be extremely hard for the company to cost-cut its way to improving profitability. Q1 delivery numbers were extremely disappointing.

Right now the company and shareholders are clinging to robotaxi hopes.

This article was written by Adam Button at www.forexlive.com.