Tesla’s value drops below US$500b
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The news: Shares in the world’s largest EV maker, Tesla, dipped over 4% during trading on Tuesday, edging the stock closer to a 12-month low.
The numbers: Tuesday’s declines brought Tesla’s year-to-date drop to 38%, and pushed the company’s market valuation below USD500 billion ($780.29 billion).
The context: Tesla stock began to sputter in late 2023, when a global EV slowdown began to bear an impact on the industry. The EV carmaker temporarily lost its position as the world’s largest in Q4 2023 when China’s BYD briefly overtook it on the number of EVs sold. Tesla regained its crown in Q1, despite both companies reporting disappointing sales.
Reports emerged earlier this week that Tesla plans to lay off around 10% of its global workforce, amounting to around 14,000 employees, in efforts to reduce costs and increase productivity. According to sources cited by Reuters, the job cuts will impact staff in the automaker’s largest markets, the US and China. Several US service centres saw heavy layoffs effective immediately, and a Tesla program manager in California posted a spreadsheet on LinkedIn of over 140 staff, mostly engineers, who had been laid off.
