Tesla, Inc.,NASDAQ: TSLA) is closing one of its offices in San Mateo, California, laying off more than 50% of its workforce there, Wall Street Journal Reported citing those with knowledge of the matter,
The decision is part of the company’s plan to reduce the workforce to deal with rising costs. Office workers in San Mateo work on the electric vehicle giant’s advanced driver assistance system Autopilot.
The 200 people laid off include white-collar workers and hourly workers. Some of them are transferred within the company.
Meanwhile, Tesla is scheduled to release its second-quarter vehicle delivery numbers early next month.
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Last week, Credit Suisse (NYSE:CS) Analyst Dan Levy kept a Buy rating on the stock but lowered its price target to $1,000 from $1,125 (43.3% upside potential).
Levi’s expects Tesla to deliver 242,000 vehicles in the second quarter of 2022, while Street expects about 273,000 vehicles.
The analyst said: “We continue to believe our thesis that strong fundamentals should outweigh near-term challenges for Tesla such as recent growth sell-offs, production disruptions in China, semiconductor shortages and elevated inflationary pressures.”
Deutsche Bank (NYSE:DB) also lowered its estimate of vehicle deliveries for the second quarter by 65,000 to 245,000 units.
Deutsche Bank’s Emmanuel Rosner recently reiterated his buy rating on the TSLA with a price target of $1,125 (61.2% upside potential).
Also Morgan Stanley (NYSE:MS) Analyst Adam Jonas lowered Tesla’s estimates for the second quarter due to supply chain issues and lower volumes.
The analyst kept a buy rating on the stock and lowered the price target to $1,200 from $1,300 (72% upside potential).
Overall, the stock has a moderate buy consensus rating based on 16 buy, eight hold and six sell. The TSLA average price target of $899.86 represents a 29% upside potential from current levels. Shares are down 35.7% over the past six months.
Following Tuesday’s press release, TSLA shares fell 5% to close at $697.99. In recent weeks, the company has announced job cuts after inflicting billions of dollars in losses due to battery cell manufacturing challenges and supply chain disruptions.
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