Tesla To Freeze Hiring, Lay Off Employees Next Quarter
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Another wave of layoffs are coming at electric-car maker Tesla Inc in the next quarter, news website Electrek reported on Wednesday, citing a source familiar with the matter.
Tesla is also going to freeze hiring, according to the report. The company did not immediately respond to a Reuters request for comment.
Shares of Tesla rose 1% to $139.25 in trading before the bell.
The reported move comes at a time when Tesla investors have raised concerns over Chief Executive Elon Musk’s distraction with managing Twitter, the social media platform he bought for $44 billion in October.
Moreover, Tesla analysts have also cut their price targets on the stock worried that weakness in demand from China will weigh on the EV maker’s deliveries next year.
Musk in June said Tesla would reduce its salaried workforce by roughly 10% over the next three months.
Questions & Answers
Q.What is prompting these reported changes in staffing at Tesla?
What is prompting these reported changes in staffing at Tesla?
The reported changes coincide with investor concerns about CEO Elon Musk's involvement with Twitter. Also, analysts have lowered price targets due to worries about weaker demand from China affecting future electric vehicle deliveries.
Q.Has Tesla commented on the reported hiring freeze and layoffs?
Has Tesla commented on the reported hiring freeze and layoffs?
No, the company has not yet commented. Tesla did not immediately respond to a Reuters request for comment regarding the report from news website Electrek about the upcoming staffing changes.
Q.What impact did this news have on Tesla's stock price?
What impact did this news have on Tesla's stock price?
Following the report, shares of Tesla rose 1% to $139.25 in trading before the bell. This indicates a minor positive reaction in the market despite the news of potential layoffs and a hiring freeze.
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