Tesla (NASDAQ:TSLA) is taking even more steps to reduce its staff. This past weekend, the electric vehicle leader announced that it will be implementing more job cuts. This comes after the company laid off 10% of its staff in April 2024 and then cut its Supercharger team in a surprise move. This latest round of Tesla layoffs will hit its software, service, and engineering teams.
What the Tesla Layoffs Mean for TSLA Stock
With multiple rounds of layoffs announced over the past month, TSLA stock is facing an uncertain future. Job cuts do not always signal that a company is in distress. But given the uncertain nature of Elon Musk, it is hard not to be concerned that the trend of Tesla layoffs may be a harbinger of worse things to come. Particularly concerning is the fact that last week, Musk cut the company’s entire supercharging team, including Senior Director Rebecca Tinucci.
Musk has clearly been on a mission to trim the fat at Tesla recently. According to Electrek, he followed the supercharging team cuts by telling other executives that unless they reduced their teams, they would lose their jobs.
The most recent round of job cuts are the third round of Tesla layoffs in less than one month. At this point, it is going to be hard for investors not to be nervous about these massive changes, especially as TSLA stock has fallen more than 17% over the past six months and 25% in the year to date.
Tesla may be an industry-leading company, but Musk’s current management style is generating more questions than answers right now. If there are any more Tesla layoffs, it will be very difficult not to worry about the company’s future.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
