Elon Musk, CEO of Tesla Inc. (NASDAQ:TSLA), is being called upon to clarify the circumstances surrounding the recent layoffs at the company. The move comes in the wake of a challenging period for the electric vehicle giant, with investors seeking reassurances.
What Happened: Wedbush analyst Dan Ives has urged Musk to shed light on the decision to lay off 10% of Tesla’s global workforce. This decision follows a quarter that saw a 20% drop in deliveries compared to the previous year, reported Business Insider.
High-ranking executives, including Drew Baglino, Tesla’s former senior vice president of powertrain and electrical engineering, and Rohan Patel, Tesla’s former vice president of public policy and business development, have also exited the company. Ives has described Baglino’s departure as a significant blow to Tesla due to his role in the development of Tesla’s Model 2.
“The Street wants and NEEDS answers next week on Tesla’s 1Q conference call next Tuesday, April 23rd after the bell as the string of bad news over the last few months has been a horror show for investors in the Tesla story,” Ives wrote in a memo according to the report.
“We need to hear the rationale for the cost cutting, the strategy going forward, product roadmap, ...