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Originally Posted by Dixievet
Whatever they did, stock price was up ~7% earlier today and up only about 2% now.....
Add on top of that the new production numbers for the Model 3 are going to 30,000 for the quarter over the estimated 20,000.
I am guessing those people are not related to production and more salaried desk positions related to other business units within the organization.
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Quote:
Originally Posted by Dixievet
And now it is up 3.5%....probably proof that the people cut were not integral to existing business structures
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The stock market usually responds favorably to layoffs, because they cut costs and increase profits, at least in the short term. Of course, Tesla has never had profits, but this has the potential to move them closer to having them. I think Musk said recently they will be profitable in the third quarter. Maybe this is part of the reason he said that. When a company is burning cash like it's firewood, layoffs are good news.