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Tesla stock looks to break losing streak after report of hiring freeze, layoff plans

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Electric-vehicle maker Tesla Inc. is planning another round of layoffs for the first quarter and is instituting a hiring freeze, Electrek reported on Wednesday, citing a person familiar with the matter.

The decision, Electrek noted, would follow extensive growth for the company and a 61% drop for Tesla’s
TSLA,
+0.90%
stock through this year, with much of the fall coming after Chief Executive Elon Musk’s wrangling to eventually buy Twitter and what some analysts have characterized as erratic oversight of the social-media platform.

The scope of the hiring freeze and layoffs were not immediately clear. Tesla was not immediately available for comment. Tesla and its subsidiaries had 99,290 full-time employees at the end of last year.

READ MORE: Tesla stock closes lower than $150 for first time in more than two years as analysts say they can’t ignore Elon Musk’s Twitter ‘nightmare’ anymore

Shares were down 0.7% to 136.61 on Wednesday, after creeping higher earlier in the day. That bump higher briefly snapped a three-day losing streak for Tesla stock, after shares lost support at $150, which was within a range that one analyst called “a critical battle line to defend beyond further weakness.” Shares have trended toward their worst month, quarter and year ever.

Reuters reported in June that Musk said Tesla needed to cut roughly 10% of its salaried positions, saying he had a “super bad feeling” about the state of the economy.

Analysts have worried about waning demand for Tesla’s vehicles in China and competition from other electric-vehicle makers. Musk’s hefty sales of Tesla stock and distractions related to his ownership of Twitter have also caused anxiety for shareholders.

Credit: marketwatch.com

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