Tesla has seen its profits more than halve this year, and says it will bring forward the launch of new models after announcing thousands of job cuts to try to reverse its fortunes.
Despite plans to bring forward new models originally planned for next year the firm is cutting its workforce.
Tesla said it would lose 3,332 jobs in California and 2,688 positions in Texas, starting mid-June.
The cuts in Texas represent 12% of Tesla’s total workforce of almost 23,000 in the area where its gigafactory and headquarters are located.
I wonder why their after hours stock price skyrocketed.
Dead cat bounce?
When a stock drops by a lot there’s usually a low point at which some investors will start buying it again because it got so cheap. This drives the price higher but only temporarily. This is called the “dead cat bounce.”
There’s a pandemic term I haven’t seen in the wild for a hot minute.
“Dead cat bounce” has been a term in stocks for 30+years…
TIL thanks
I was going to to ask the same thing. Up over two dollars in premarket trading.
My only guess is that there were rumors of layoffs, and the stock market LOVES when the middle class gets fired.
It was because they announced they were speeding up their plans for their affordable next gen vehicle earlier than already announced, which was H2 2025
Now it’s late 2024/H1 2025
They are ditching their next gen “unboxed” production method to do this however and leaving that for the robo taxi. The vehicles will be a hybrid if their next gen tech and existing tech. They claim the new models to be released will be built on the existing manufacturing lines, getting them to over 3mil vehicles a year.
These will be more akin to a gen 2.5.
Robo taxi will be gen 3
If their unboxed plans work with the taxi, they’ll use it for other vehicles in the future.
Thanks for the details! All I saw anywhere was the bad news, but this does sound like a good reason for optimism if you can trust this company.
That’s the key point. After all the other delays, they need to show they can do something on time now to gain some of that back.
It feels like this announcement was 100% to keep the shareholders happy with probably very little planning ahead of time.