Tesla Trims The Fat (or maybe the whole ham)

by | May 7, 2024

Tesla’s workforce is experiencing the employment equivalent of a black hole — it just keeps sucking people in.

For the fourth week running, pink slips have been raining down like a particularly depressing confetti parade. Software engineers, service technicians, and even the entire EV charging team (500 strong!) have all found themselves on the receiving end of Elon Musk’s cold, hard choices.

The official story from Tesla? Reorganization. Apparently, every five years the company needs a good shake-up, like a particularly enthusiastic snow globe. But let’s face it, that explanation feels a bit hollow.

In an email to employees, Musk himself talked about needing to be “absolutely hard core” about these cuts, and that anyone working under executives who “don’t obviously pass the excellent, necessary and trustworthy test” would be out of a job. Sounds less like a performance review and more like a scene from a dystopian novel, doesn’t it?

Musk has privately told executives that he wanted to slash a full 20% of the workforce, specifically because the company’s quarterly vehicle deliveries fell by that same amount.

Considering the 10% reduction already confirmed, it seems Musk is just getting warmed up. This all comes against a backdrop of slumping sales, dwindling profits, and a CEO who seems more interested in things other than running the EV maker.

So, what’s next? Will the layoffs continue until there’s just Elon Musk and a single, very nervous intern left? Only time (and maybe the stock price) will tell.

But one thing’s for sure: Tesla’s workforce is feeling the squeeze, and it’s not exactly a morale booster.

TSLA Stock


Our own Jeffry Turnmire has had a longtime downside target of between 160 and 140 for TSLA stock.

When the stock hit 138 right before earnings, Jeffry told us that it could be getting ready to go higher. Sure enough, despite bad earnings, TSLA bounced hard — as much as 43% from its lowest point.

It’s a great example of how Jeffry tells us: The news doesn’t make the charts.

Now he tells us TSLA faces significant upside resistance, but if it can work firmly through the 207 level, he’s got major, longer-term upside targets of 350 and even 500.

We wouldn’t call this a tradeable opportunity yet. But keep your eye on TSLA.

— The Prosperity Pub Team


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