Tesla shares down 39% YTD, trades below $150 as steep discounts to lure customers hurts overall sales
it is cutting 10 per cent of its staff globally- around 14,000 jobs. Also Read: Elon Musk in India: From meeting PM Modi to Agra visit, check out Tesla CEO's likely plans for upcoming visit The next day, Tesla announced it would try to re-instate Musk's $56 billion pay package that was rejected by a Delaware judge in January, who said that the arrangement was dictated by Musk and was the product of negotiations with directors who were not independent of him, according to Associated Press. Tesla shares hit an all-time intraday high of $415.50 in November of 2021, adjusted for a 3-for-1 stock split that took effect in August 2022.
Tesla sales fell sharply last quarter as competition increased worldwide, electric vehicle sales growth slowed, and price cuts failed to draw more buyers. The company said it delivered 386,810 vehicles from January through March, nearly nine per cent below the 423,000 it sold in the same quarter of last year. Dan Ives, an analyst with Wedbush who has been very bullish on Tesla’s stock, called the first quarter sales numbers an “unmitigated disaster." “For Musk, this is a fork in the road time to get Tesla through this turbulent period otherwise dark days could be ahead," Ives wrote in a note to clients earlier this week.
“With the ongoing debacle around margins and demand, Musk will need to quickly take the reins back in to regain confidence" of Wall Street. Since last year, Tesla has cut prices as much as $20,000 on some models as it faced increasing competition and slowing demand. The price cuts caused used electric vehicle values to drop and clipped Tesla’s profit margins.
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