Posted on 04/16/2024 10:08:04 AM PDT by SeekAndFind
Tesla shares extended declines Tuesday, pulling it close to the lowest levels since last spring, following the group's largest-ever job cuts, which have analysts and investors questioning the longer-term growth story of one of the market's most popular stocks.
The Austin electric-vehicle group (TSLA) unveiled the layoffs in a companywide memo penned by Chief Executive Elon Musk, who told employees it was time to "streamline the company for the next phase of growth."
"As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity," Musk said. "As part of this effort, we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally."
The cull, which is likely to total around 14,000 employees, also included two key executives: Drew Baglino, who headed Tesla's battery division, and Rohan Patel, vice president for public policy.
Tesla shares have been in an extended drawdown since the company posted a weaker-than-expected first-quarter profit update in early February. The report included narrowing profit margins and a warning that full-year delivery totals would be "notably lower" than they were in 2023.
Deliveries have also disappointed investors, with the group handing over 387,000 new cars to customers during the three months ended in March. That was a 20% decline from the record 484,000 it notched over the final months of last year and the biggest miss to estimates since Wall Street began compiling data in the mid-2010s.
Weaker-than-expected sales figures from China, where last month's volumes fell to the lowest levels in more than a year, are also adding to pressure on the market's aggressive full-year delivery targets for Tesla.
(Excerpt) Read more at msn.com ...
Elon will prevail
He has the better product
No, I only repeat what he stated, period. I don't make things up.
How has he failed? He accomplished his goals. Some buyers may have complained, but the company is successful. I saw similar arguments against Apple early on in the late 1990's , a lot of people like you saying they would go under. I bought stock when it was in the teens/share, and saw it go through stock splits as it became a tech behemoth. This happens with other companies with new technology, they encounter fierce resistance even as they grow. I was an early adopter of new tech going back to the mid-1970's, and have seen many companies fail while others grew. Tesla is one that is, and will continue growing. Tesla is not going under anytime soon. They continue having growth and profitability year over year, and I am glad I bought stock early on. I don't own a Tesla vehicle, but I have an interest in the company because I own stock. As for Tesla vehicles, they continue to sell even as other EV producers are failing. I never said EVs will change the minds of customers that want ICE vehicles, and I agree that ICE vehicles will continue to dominate well into the future.
I own several ICE vehicles, as well as an EV. (Actually a 5th that I am completely rebuilding.) So far, my EV is my daily driver and I personally see nothing in it to disappoint me. Mainly because I can shift to the ICE vehicles as needed. Not everyone's situation, so others will continue to be dependent on owning an ICE vehicle. (Except for my brother-in-law living in a condo, he couldn't buy an EV because of no charge port, so he bought a hydrogen-powered car - big mistake because refueling stations are getting closed down here in California.)
Let's revisit this topic in 5 years and see how it plays out. I say EV's will still be around, about 40 percent penetration of the market, and ICE will continue to dominate. And Tesla will be a powerhouse tech company with growth like Apple, Amazon, Google, and META. GM will be lucky to still be around.
Name one. I suggest you check out Sandy Munroe and his reviews of EV producers. His praise of Tesla over other producers is overwhelming. For instance, 48 volt and Ethernet harnesses, steer-by-wire, and AI that Tesla is using.
Okay, let's revisit this topic in 1 year, not 5. Tesla is the exception in western markets. Tesla has seen growth year over year. It is the number 1 car seller in many European markets. That's not just among EVs, but among all sales including ICE and EVs. Gosh, those Europeans are darn stupid! You say Tesla is seeing a slowdown, but that is a slowdown of growth. They are still producing and selling many vehicles, and sell and make a profit on each and every one. When you say that EVs are tanking, you should clarify it to mean that non-Tesla EVs are inferior to Tesla. EVs are not selling on GM, Ford and other sales lots. Because they are a mess. Instead of concentrating on smaller urban EVs, they built batteries onto ICE platforms, notably trucks. They can't adequately tow or haul due to halving their limited range. Dumb.
Nice try, but you can't name one. When it comes to EV technology, Tesla has proven to be superior. You may be thinking of luxury appointments, I'll give you that. But that has nothing to do with tech that Tesla improved on, like single-cast rear and front frames, heat/chill pumps, AI software, over-the-air updates, etc. There is a reason why Tesla is outselling all EV cars in Europe.
It’s useless speaking facts to you, which you ignore because of your bias against EVs and AI. Stay in the past, and ignore reality. I’m done trying to present the true situation which you ignore. Tesla is successful, continues to be profitable, and is becoming a giant in the tech world. And my stock portfolio makes me smile.
It’s useless speaking facts to you, which you ignore because of your bias against EVs and AI. Stay in the past, and ignore reality. I’m done trying to present the true situation which you ignore. Tesla is successful, continues to be profitable, and is becoming a giant in the tech world. And my stock portfolio makes me smile.
Get over yourself and stop being a dick. I don’t think you understand technology at all. I’ve been computing since the 1960s. I worked with mainframes, minis, and micros. I worked as a programmer in multiple languages, from high-level to machine code. What are you, 15 years old? I worked as a senior systems engineer, involved in planning for new data centers. I worked as a manager of a tech team. So don’t think you know it all, I don’t but I’ve been around when it comes to computing.
No, I don’t love Tesla and Musk. I look at facts and invest my money wisely where it grows. I’ve seen my stock holdings go through a couple splits that grew 1500 percent. What do you invest in, GM?
Hey, I understand what it means to be in denial. I’ve been there myself.
But, why deny that you are love with Tesla and Musk. When you love something and want that something, you don’t go into denial. You’re even disregarding the links I posted, which were the opposite of your wishes/desires/thinking.
Now, when it comes to AI, I still say that its way overrated and over-hyped. It’s useful, but not really that intelligent. It’s just computing emulating intelligence, but a very low level. People have swallowed the hype, but, many will be disappointed. But, you can continue to be in denial about that too.
And, hey, sounds like your experiences in data-processing/computer-science are similar to mine.
But, I don’t go around bragging about it.
I started my data=processing career in the 1960s, and I worked on just about all computer platforms available during that career, including IBM and Burroushs and NCR and Honeywell and Tandem mini-computers (my favorite). I also worked on just about any application one can think of, and with all kinds of computer languages, including COBOL and C/C++ and ADA and ALGOL and Assembly languages, and NEAT-3 (bet you never heard of that one), and SCOBOL (Tandem again) and TAL (Tandem again), and various other PC languages, and much more.
I specialized in designing and programming and managing databases for different companies, and I even designed my own version of data management software.
During my 40+ data-processing/computer science career, I heard and read a lot about ‘intelligent’ emulation software, and from what I saw/read, they all left a lot to be desired. This current attempt at intelligent software ‘programming’ (AI) is a bit more sophisticated, but still not that intelligent.
All in all, you’re still the one denying reality, with all the subjects we have been discussing.
So, take a break from your love of all things Tesla/Musk, and come back to reality. EVs have met their match, and that match is that, people are not buying them as much and don’t listen to the hype of the last 20 years any more.
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