Mass layoffs, Elon Musk wants his $56 billion back, and EV demand slows: Tesla news roundup
Tesla is having a very rough 2024, although casual investors and observers don’t really have to look back further than just the past few days, which have wrecked the company’s stock price.
Tesla stock hit a new 52-week low on Thursday after Deutsche Bank analysts joined others in slashing their ratings and price targets for the electric vehicle maker. Shares had already been sinking after CEO Elon Musk on Sunday announced that at least 14,000 workers would be laid off this week, according to a leaked memo to Tesla’s 140,000 global employees. The slew of layoffs confirmed previous concerns that Tesla is grappling with an EV demand problem, according to JPMorgan analysts.
Things were only worsened when two executives — Andrew Baglino, Tesla’s head of energy engineering and powertrain, and Rohan Patel, who oversaw public policy and business development — announced their resignations on Monday.
On Wednesday, Tesla reignited the debate over Musk’s $56 billion compensation package when it announced a shareholder proposal to re-approve it — albeit at a slightly smaller $47 billion. A Delaware state judge had shot down the plan earlier this year, wiping out some of Musk’s net worth. Oh, and Meta CEO Mark Zuckerberg’s net worth surpassed Musk’s by a narrow $1 billion margin.
Check out highlights from a busy week in Tesla news.
Tesla wants Elon Musk to get his $56 billion pay package back
Tesla asked investors to “restore shareholder democracy” by ratifying CEO Elon Musk’s $56 billion pay package that was struck down by a Delaware judge in January. The plan was the largest executive compensation package in history and — briefly — made him the the world’s richest person. Read More
Tesla stock just hit a new 52-week low after analysts said investors may start ‘tossing in the towel’
Tesla stock fell to a new 52-week low, just days before Elon Musk’s electric vehicle company is set to report full earnings for the first quarter of 2024.
Tesla’s layoffs ‘leave no doubt’ that Elon Musk has an EV demand problem, JPMorgan says
Consider Tesla’s sweeping layoffs a result of declining demand for its electric vehicles, according to JPMorgan analysts.
Mark Zuckerberg has passed Elon Musk as the world’s third-richest person as Tesla stock hits new lows
Meta CEO Mark Zuckerberg is officially wealthier than Elon Musk as Tesla’s rapidly dropping stock tanks Musk’s net worth.
Tesla CEO Elon Musk apologizes for ‘incorrectly low’ severance packages after mass layoffs
Tesla CEO Elon Musk said some severance packages sent to some of the more than 14,000 Tesla employees laid off this week were “incorrectly” low.
Tesla stock slides after mass layoffs as its market cap falls below $500 billion
Tesla stock continued its months-long descent after mass layoffs swept through the company’s operations in Texas and top executives resigned.
Elon Musk’s Tesla is having a brutal 2024. Here’s how it went wrong
Elon Musk’s Tesla has had a rough start to the year.
The Austin, Texas-based electric vehicle maker’s sales have taken a dive, while production has been slammed by unexpected factory shutdowns and planned renovations. It’s facing rising competition in China from local automakers and more legal action in the U.S. And the ever-distracted Musk isn’t making things easier on his EV company.
Here’s where it all went wrong.
Elon Musk says Tesla will lay off 10% of its workforce
Tesla is cutting “more than 10%” of its global workforce following an abysmal first fiscal quarter that saw the electric vehicle maker fall far short of Wall Street’s sales expectations, CEO Elon Musk announced, citing a “duplication of roles” across its operations.
Read Tesla CEO Elon Musk’s leaked layoffs memo
Tesla CEO Elon Musk informed workers over the weekend that thousands of them will soon lose their jobs, according to a leaked memo to staff. Although Musk didn’t disclose an exact number, at least 14,000 workers are expected to have their roles slashed.
Tesla is losing top executives as it lays off thousands of workers
Two of Tesla’s executives — including one of just four executive leaders — resigned from the company this week as more than 14,000 workers were laid off.