Tuesday, June 12, 2018

"Tesla to cut about 9% of jobs across company" (TSLA)

The stock top-ticked today at $354.97,  just before rumors of this news started circulating.
$342.63 up $10.53 (+3.17%)
The algos may have misread the cost cutting nature of the story.

From CNBC via Yahoo Finance:
Tesla (TSLA) will cut about 9 percent of its workforce, mostly focused on salaried positions.
Tesla shares remained 4 percent higher in trading Tuesday afternoon, however ahead of the news the stock had been up as much as 5 percent.

Tesla is trying to reach a Model 3 production rate of 5,000 cars in a single week by the end of June. The electric car maker has struggled to meet its ambitious production targets for the sedan.
A copy of Musk's email to Tesla employees follows:
As described previously, we are conducting a comprehensive organizational restructuring across our whole company. Tesla has grown and evolved rapidly over the past several years, which has resulted in some duplication of roles and some job functions that, while they made sense in the past, are difficult to justify today.

As part of this effort, and the need to reduce costs and become profitable, we have made the difficult decision to let go of approximately 9% of our colleagues across the company. These cuts were almost entirely made from our salaried population and no production associates were included, so this will not affect our ability to reach Model 3 production targets in the coming months....