Tesla Might Be Preparing Layoffs

As stated by a trustworthy source familiar with the matter, the company has informed employees about pausing new hiring and preparing for a new round of cuts across certain teams in Q1 2023.

No particulars on the number of jobs concerned were provided, and it’s reported Tesla is still preparing to expand in some manufacturing locations. The event would mark TSLA’s second wave of staff cuts within just eight months if authorized. In early June, the company’s CEO, Elon Musk, reported a 10% workforce deduction quoting worsening macro conditions and overly assertive hiring in prior periods.

No major car maker has executed layoffs lately. Nevertheless, Tesla is not the only technology company aiming to get a tighter grip on labor costs – tech giants such as Meta (NASDAQ: META), Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Google (NASDAQ: GOOGL), among many others, have all reported hiring freezes and cuts over the past few months.

The rumor also reflects TSLA’s present stock downfall – shares of the EV giant are falling over 65% YTD, buffeted by global economic battles, as well as controversial actions by its leader Elon Musk, most notably his Twitter purchase and the Tesla share sales he has made to fund it.

TSLA accumulates almost 1% in early pre-market trading after failing 8% in the prior trading session.

Cathie Woods ARK Adds Weakness

Cathie Wood’s ARK Investment Management resumed adding to the fund’s Tesla (NASDAQ: TSLA) position on recent weakness in the EV maker. ARK purchased another 19,125 Tesla shares on Tuesday through the ARKK ETF (NYSE: ARKK). Based on Tuesday’s closing price, the purchase was around $2.64 million.

On Monday, the fund purchased 27,494 shares through the ARKQ ETF (NYSE: ARKQ), valued at roughly $3.8M. ARK has also made matching buys in recent weeks.