Tesla is falling after firing hundreds of workers
Benjamin Zhang/Business Insider
Tesla was down as much as 1.91% on the first day of trading since announcing the firing of about 400 people.
A Tesla spokesperson told Business Insider on Friday evening that it would be firing the employees after routine performance reviews. The company plans to refill some of the now-open positions.
Shares of Tesla were down close to 2% early on Monday, but have settled around 1.43% lower at $350.48.
The firings were wide-ranging, and are said to have included managers. Tesla has said it is still growing its workforce worldwide.
The firings came in the middle of the company's production ramp-up of the Model 3. The first ever mass-marketed car from Tesla is being restricted by "production bottlenecks," according to CEO Elon Musk. Welding the steel parts of the car is proving difficult for the company, as it is used to building cars out of aluminum.
The company has about 450,000 preorders of its Model 3 vehicles, but it only produced 260 Model 3s in the third quarter. It had hoped to be producing 1,500 a month by September and is well behind that target.
Tesla is up 63.34% this year despite the production delays.
Read about how investors are still valuing Tesla like a tech company when all it makes is cars here...
Get the latest Tesla stock price here.
- I quit McKinsey after 1.5 years. I was making over $200k but my mental health was shattered.
- Some Tesla factory workers realized they were laid off when security scanned their badges and sent them back on shuttles, sources say
- I tutor the children of some of Dubai's richest people. One of them paid me $3,000 to do his homework.
- Move over Bollywood, audio shows are starting to enter the coveted ‘100 Crores Club’
- 10 Powerful foods for lowering bad cholesterol
- Eat Well, live well: 10 Potassium-rich foods to maintain healthy blood pressure
- Bitcoin scam case: ED attaches assets worth over Rs 97 cr of Raj Kundra, Shilpa Shetty
- IREDA's GIFT City branch to give special foreign currency loans for green projects