For Tesla, the layoffs come following a disappointing Q1 delivery report that showed the company missed widely on consensus estimates and built up supply in excess of 46,000 vehicles. This implies that Tesla is feeling the impact of slowing EV demand, both in the US and globally, after reporting its first year-over-year quarterly decline in deliveries since 2020.
Noted Tesla bull Dan Ives at Wedbush Securities warned the layoffs were a negative sign for Tesla, as seen in Monday’s move lower. Ives has a $300 price target and Buy rating on the stock.
“This is an ominous signal that speaks to tough times ahead for Tesla as Musk navigated this Category 5 storm,” Ives said in a comment to Yahoo Finance. “Demand has been soft globally, and this is an unfortunately necessary move for Tesla to cut costs with a softer growth outlook.”