Dan Niles, senior portfolio manager at Satori Funds, joins Morning with Maria to share his stock picks as investors await the March jobs report.
Some recently laid-off Tesla employees reportedly experienced severance mix-ups.
CEO Elon Musk sent an email to employees about the issue Wednesday, saying, “We have become aware that some severance benefits are unreasonably low.” CNBC reported.
Tesla announced earlier this week in a filing with the Securities and Exchange Commission (SEC) that it plans to lay off 10% of its workforce.
Tesla to lay off more than 10% of employees
“I apologize for this mistake,” Musk said in an email regarding the severance pay issue, according to CNBC. “We are fixing it immediately.”
Elon Musk speaks on stage at the New York Times Dealbook Summit 2023 held at Jazz at Lincoln Center on November 29, 2023 in New York City. (Photo Credit: Slaven Vlasic/Getty Images for The New York Times/Getty Images)
Tesla did not respond to FOX Business’ request for comment.
With more than 140,400 employees at the end of 2023, Tesla’s 10% cut could result in 14,000 job losses.
In announcing the layoffs, Tesla said the company had seen “duplication of roles and duties in certain areas” amid its “rapid growth” in recent years.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| TSLA | Tesla Inc. | 150.55 | -4.90 | -3.15% |
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Along with the layoffs, Tesla also announced that Andrew Baglino, senior vice president of powertrain and energy engineering, is retiring after 18 years with the company.
“We believe it is extremely important to look at all aspects of the company to reduce costs and increase productivity,” the EV maker said. “This move prepares Tesla for its next phase of growth, as the company develops some of the most innovative technologies in automotive, energy, and artificial intelligence.”
Tesla reported earlier this month that its quarterly shipments fell for the first time in nearly four years and fell short of Wall Street analysts’ expectations. The company delivered approximately 387,000 vehicles in the first quarter, which was significantly lower than the expected approximately 443,000 vehicles and an 8.5% decrease compared to the first quarter of last year.
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In late January, when the company announced its fourth-quarter results, Tesla told analysts and investors that it was now “between two major waves of growth. “It starts with expansion, and that’s what we believe will be the next wave.” It begins with the global expansion of next-generation vehicle platforms. ”
New Tesla electric vehicles fill the parking lot of a Tesla retail store on Route 347 in Smithtown, New York, on July 5, 2023. (Photo by John Paraskevas/Newsday RM via Getty Images / Getty Images)
The company said vehicle growth rates “may be significantly lower” than in 2023 “as our teams work to launch next-generation vehicles at our Gigafactory in Texas.”
FOX Business’ Stephen Sorace and Eric Revell contributed to this report.
