What's happened
Tesla's stock plummets over 4% ahead of quarterly earnings, approaching its lowest price since January 2023. The company has cut prices in major markets and reduced its workforce by 10%, impacting about 14,000 jobs.
Why it matters
The significant drop in Tesla's stock price, coupled with price cuts and layoffs, reflects the company's struggle with falling sales and the need to restructure to remain competitive. These actions could have far-reaching implications for Tesla's future performance and market position.
What the papers say
The Independent reports that Tesla's stock hit its lowest cost in over a year, wiping out a year's gains due to diminishing sales and price cuts. The Japan Times highlights Tesla's declining market valuation and job cuts, indicating a slowdown in the company's growth.
How we got here
Tesla's challenges stem from a combination of factors, including slowing demand, intense competition in the electric vehicle market, and the need to streamline operations to improve profitability. The company's stock performance reflects investor concerns about its ability to maintain growth and innovation.
Common question
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Tesla, Inc. is an American electric vehicle and clean energy company based in Palo Alto, California. The company specializes in electric vehicle manufacturing, battery energy storage from home to grid scale and, through its acquisition of SolarCity, solar
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Elon Reeve Musk FRS is an engineer, industrial designer, technology entrepreneur and philanthropist. He is the founder, CEO, CTO and chief designer of SpaceX; early investor, CEO and product architect of Tesla, Inc.; founder of The Boring Company; co-foun