Shares of electric vehicle maker Tesla Inc. fell for a fourth straight session on Wednesday, following a report of a hiring freeze and layoffs.
Tesla
TSLA,
is planning layoffs in the first quarter and is conducting a hiring freeze, Electrek reports on Wednesday, citing a person familiar with the matter. Electrek noted that the decision will drag the company’s far-reaching growth and Tesla’s 61 percent decline.
TSLA,
stocks this year, with much of the decline occurring after CEO Elon Musk debated whether to eventually buy Twitter and what some analysts have described as erratic scrutiny of the stock market. social media platform.
The scope of the hiring and firing freezes was not immediately clear. Tesla did not respond to a request for comment. Tesla and its subsidiaries had 99,290 full-time employees at the end of 2021.
Shares fell 0.2% to 137.57 on Wednesday, the fourth consecutive daily drop and the 11th drop in the past 13 sessions. The stock has dropped a total of 12.7% in a four-day losing streak, and is on their way for their worst month, quarter and year on record from a percentage point of view. The stock lost support at $150 on Monday, which one analyst called “an important front line to protect from further weakness.”
Reuters reported in June Musk said that Tesla needed to cut about 10% of its salaried positions, saying he had “an extremely bad feeling” about the state of the economy.
Analysts were worried about demand for Tesla vehicles in China and competition from other electric vehicle makers. Musk’s massive sales of Tesla stock and distractions related to his ownership of Twitter also worry shareholders.
Tesla shares are down 61% through 2022, when the S&P 500
SPX,
fell 18.6%. The stock has suffered the 12th worst percentage drop of any S&P 500 component so far this year, according to FactSet, and the electric-car company’s drop in market capitalization would be the fourth worst in index, MarketWatch’s Phil van Doorn reported Wednesday.
