2024-05-08 11:55:59 ET
Summary
- Tesla, Inc. has made significant staff cuts, including firing the head of the supercharger network and disbanding the marketing team.
- This has led to speculation that Tesla has a liquidity problem.
- A look at Tesla's balance sheet indicates that cash should not be an immediate concern.
- However, Tesla's cash flow is likely to be negative in Q2, and in my opinion, the company may look to raise additional capital later in the year.
Tesla, Inc. (TSLA) has made drastic staff cuts over the past month, maybe as high as 20% of the workforce. In the Q1 earnings call , Elon Musk stated that the plan to develop a $25,000 car, sometimes referred to as the Model 2 and code-named "Redwood," on an entirely new platform has been modified. The new plan is to develop cars that can be produced on existing production lines, more quickly and with lower CAPEX. The one-piece “giga-casting” process that Tesla claimed would reduce manufacturing costs has apparently been abandoned .
In a surprise move last week, Elon Musk removed the head of the Supercharger network and the entire department of 500 employees. The 40-person marketing team was also disbanded. Layoffs continued this week....
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For further details see:
Taking A Closer Look At Tesla's Cash Position