Tesla Stock Is Trading Lower Again: What's Going On?

Tesla Inc TSLA shares are trading lower Thursday, adding to losses of approximately 11% over the last week. Here’s a look at what’s going on.

What Happened: Tesla stock is continuing a multi-day slide that has seen shares fall to their lowest levels in more than a year amid workforce cuts.

Tesla kicked off the week facing selling pressure on reports the EV maker was planning to lay off more than 10% of its workforce. New reports indicate the company has also started cutting temporary staff. Tesla let go of 300 temporary workers in Germany on Thursday, according to Reuters.

“These are not layoffs of Tesla workers,” a spokesperson for the company in Germany reportedly told Reuters.

Reports from Tuesday afternoon also suggested that Tesla had pushed back the scheduled delivery dates for multiple Cybertruck buyers without providing a reason for the delay. CEO Elon Musk confirmed on X that the delays were a result of Tesla “just being very cautious.”

Investors also continue to brace for earnings next week. Analysts are anticipating earnings of 52 cents per share and revenue of $22.49 billion, according to estimates from Benzinga Pro.

Deutsche Bank analyst Emmanuel Rosner downgraded Tesla from Buy to Hold on Thursday and lowered the price target from $189 to $123 ahead of earnings next week.

GLJ Research analyst Gordon Johnson maintained Tesla with a Sell rating this week and lowered the price target from $23.53 to $22.86, noting that consensus estimates for the quarter are "still too high."

The longtime Tesla bear warned that Tesla could report its first negative free cash flow quarter since 2020 next week on the back of excess production, waning demand and inventory build problems.

Wedbush’s Dan Ives also released a new note this week calling for answers from Musk.

“We need to hear the rationale for the cost cutting, the strategy going forward, product roadmap, and an overall vision from Musk otherwise many investors might head for the elevators during this Category 5 perfect storm of weak demand Tesla is seeing globally in 2024,” Ives said in a note to clients.

Tesla has been under pressure in recent months due to slowing demand trends. The EV maker has also reported poor quarterly results in two straight quarters. Investors will be paying close attention to margins and the company's outlook next week. Ives called the coming earnings report a fork in the road for Musk and company.

Check This Out: Legal Expert Says Tesla Shareholder Vote To Approve Elon Musk’s Pay ‘For His Past Work’ Is Like Setting ‘Assets On Fire Without Benefit To Company’

TSLA Price Action: Tesla shares are down approximately 37.5% year-to-date. The stock was down 2.81% at $151.07 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Tesla.