Nasdaq TSLA Tesla

(RTTNews) - Luxury electric car maker Tesla Inc. will reduce its salaried workforce by around 10% over the next three months, Reuters reported quoting Chief Executive Officer Elon Musk.

Electric-vehicle company Tesla (NASDAQ: TSLA) recently filed a document revealing plans for a 3-for-1 stock split.

There's no getting around the fact that the market's drop over the past year has scared off some investors. But huge sell-offs in nearly every sector mean that there are some great stocks out there that investors can snatch up at a discount.

Shifting political winds during the U.S. November mid-term elections could spell trouble for automakers' hopes of getting billions of dollars in consumer tax credits that would help the United States compete with Chinese and European rivals.

U.S. stock index futures climbed on Tuesday as investors returned from a long weekend to scoop up shares of megacap growth companies and banks that were hammered in a rout last week on worries over a global economic downturn.

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Elon Musk said there are still a few unresolved matters with his Twitter deal including the number of spam users on the system and the coming together of the debt portion of the deal.

Electric carmaker Tesla is having to raise wages to attract employees to its new manufacturing plant outside Berlin, a top German union said, warning of a looming pay dispute among the workforce there.

Production headwinds and cost pressure stemming from chip shortages, supply volatility, and COVID-led lockdowns in China took a toll on EV (Electric Vehicle) manufacturers. Given the challenges, shares of top EV makers dropped significantly. 

For instance, shares of the industry leader Tesla (NASDAQ: TSLA) fell more than 38% this year. Moreover, it has dropped about 48% from its 52-week high. 

Now What?

Amid heightened cost pressure, Tesla raised the prices of its vehicles multiple times this year. Moreover, its CEO, Elon Musk, recently warned that supply headwinds and production challenges in China would impact its Q2 performance, Bloomberg reported. 

Despite the challenges, Mizuho Securities analyst Vijay Rakesh is upbeat on EV stocks as he expects supply and production headwinds to ease in the 2H of this year. 

Rakesh stated, “Shanghai re-opening and government stimulus we believe sets up for a strong 2H22 recovery” for EV makers, including Tesla. Further, the production ramp-up in Berlin is a positive for Tesla. 

Rakesh sees the partial lockdown in the Shanghai factory as a near-term headwind. He believes TSLA’s Q2 revenues could decline sequentially amid ongoing production challenges. However, Rakesh expects a strong rebound in Q3 and Q4, led by an improved supply chain environment and ramp-up in Berlin. 

Echoing similar sentiments, RBC Capital analyst Joseph Spak also turned bullish on TSLA stock. However, Spak reduced his price target to $1,100 (69.2% upside potential) from $1,175. 

Including Rakesh and Spak, Tesla stock has received 16 Buy recommendations. Meanwhile, it has got eight Hold and Six Sell recommendations. 

Overall, it sports a Moderate Buy consensus rating on TipRanks. Further, the average Tesla price target of $917.10 implies 41.1% upside potential. 

Bottom Line 

As of yet, Tesla has managed the supply and production headwinds reasonably well. Moreover, its higher average selling prices have cushioned its margins. However, cost and supply headwinds remain a drag in the short term. 

In the long term, the strong demand trajectory, government policy support, and cost optimization will likely support the EV market and Tesla stock.

Read full Disclosure

Former Tesla Inc employees have filed a lawsuit against the U.S. electric car company alleging its decision to carry out a "mass layoff" violated federal law as the company did not provide advance notice of the job cuts.

Electric carmaker Tesla will reduce its salaried workforce by roughly 10% over the next three months, Chief Executive Elon Musk said on Tuesday.

Elon Musk said there are still a few unresolved matters with his Twitter offer including the number of spam users on the system and the coming together of the debt portion of the deal.

Elon Musk's transgender daughter has filed a request to change her name in accordance with her new gender identity and because "I no longer live with or wish to be related to my biological father in any way, shape or form."

Former Tesla Inc employees have filed a lawsuit against the U.S. electric car company alleging its decision to carry out a "mass layoff" violated federal law as the company did not provide advance notice of the job cuts.

Monday, June 20, 2022With the markets taking the day off in celebration of the new Juneteenth holiday — America’s official freedom from slavery, which took place June 19, 1865 — we have a chance to reflect on the stock market. That’s pretty tough after a week like the one

With the markets taking the day off in celebration of the new Juneteenth holiday — America’s official freedom from slavery, which took place June 19, 1865 — we have a chance to reflect on the stock market. That’s pretty tough after a week like the one we just had: despite

Stock splits are all the rage in 2022. Amazon just completed its first split in more than a decade; Tesla plans a 3-for-1 split later this year. And Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) will execute a 20-for-1 split on July 1.

It seems like every hot stock on the market is doing a split these days.

Tesla cars will be prohibited from entering the Chinese coastal district of Beidaihe, site of a secretive annual summer leadership conclave, for at least two months starting on July 1, a local traffic police official told Reuters on Monday.

Tesla cars will from July 1 be barred from driving into the Chinese coastal district of Beidaihe for at least two months, a local traffic police official told Reuters on Monday.