Tesla’s (NASDAQ: TSLA) CEO Elon Musk said he has a “super bad” feeling about the economy; therefore, staff needed to be cut by 10%.
An internal email that was seen by Reuters has shed light on this. On Thursday, June 2, an email with the subject line “pause all hiring worldwide” was sent to all of Tesla’s management. Similarly, earlier this week Musk asked all employees to return to the office.
“Everyone at Tesla is required to spend a minimum of 40 hours in the office per week. If you don’t show up, we will assume you have resigned.”
TSLA chart and analysis
Meanwhile, the shares of the electric vehicle (EV) manufacturer are down 3.5% in the pre-market session at the time of writing.
Whatsmore, the stock is also down over 35% year-to-date (YTD), despite shares now trading above the 20-day Simple Moving Average; in more recent sessions, the shares touched the $620 level, which was last time seen in July of 2021.
In the same way, the average price prediction for the shares in the next 12 months keeps falling, as analysts on Wall Street now see shares trading at $923.66, a potential increase of 19.18% from the current levels of $775. All in all, the consensus for the shares still remains at a moderate buy.
Perfect storm brewing
To top things off, the competition is not sleeping, as Ford (NYSE: F) recently made the first deliveries of their EV truck. Similarly, Toyota is challenging other Tesla businesses by unveiling their own version of a home powerpack to rival Tesla’s Powerwall.
In summary, if Tesla keeps on getting hammered from all sides by the competition, and they themselves have to make drastic cuts and moves, investors might start losing fate in Musk and his vision.
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