Comment on Tesla to lay off everyone working on Superchargers, new vehicles

SuperSpruce@lemmy.zip ⁨6⁩ ⁨months⁩ ago

• PrettyFlyForAFatGuy@feddit.uk ⁨6⁩ ⁨months⁩ ago

  Layoffs tend to precipitate big stock price jumps in my experience

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  • jj4211@lemmy.world ⁨6⁩ ⁨months⁩ ago

    They do, to a point.

    If it’s a “trim” that is a vague percentage without any standout cuts in recognized people or groups, then good. If there are recognized names or groups, but they are people associated with widely known failures, like a team whose sole responsibility is a proven financial failure, good or even better. If you have people caught up in it who are well recognized for critical successes, then the investors won’t be so bullish.

    Here we see two groups responsible seen as responsible for the key success factors of Tesla obliterated, with very little external signs of why this could be a rational move. The other layoffs might have been viewed well, even if some of them were also bad news, but I think these two will be viewed as bad news.

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    • SuperSpruce@lemmy.zip ⁨6⁩ ⁨months⁩ ago

      Nailed it. This round of layoffs is not just “trimming a bloated labor force,” it’s cutting off investment into the future of Tesla as a company, which is a really bad business move when you had an advantage in the past but are now losing it. Turns out not only Musk is a filthy rich a-hole, he’s also terrible at keeping businesses competitive. He absolutely needs to resign if Tesla wants to not fail.

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    • EnderMB@lemmy.world ⁨6⁩ ⁨months⁩ ago

      Amazon has been trimming employee numbers for close to three years now. Any large layoffs now see a dip in stock, so most of the layoffs this year have been small-scale to not worry the investors.

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      • jj4211@lemmy.world ⁨6⁩ ⁨months⁩ ago

        True, at some point investors switch from “good, they are improving efficiency” or “good, they are making way for higher quality hires” to “uhh, is there a problem? Are you going to keep going and risk going under some unknown critical threshold that will impact the health of your business?”.

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      • afraid_of_zombies@lemmy.world ⁨6⁩ ⁨months⁩ ago

        I imagine the rules are different for Amazon. It’s just a regular corporation not a vanity project.

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    • ryathal@sh.itjust.works ⁨6⁩ ⁨months⁩ ago

      Cutting the supercharger team could be a hedge for Musk personally. The stock tanking seems likely now, so not having this team makes them a less attractive acquisition.

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  • jkrtn@lemmy.ml ⁨6⁩ ⁨months⁩ ago

    Tesla valuation is beyond comprehension, I don’t want to touch it.

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  • kent_eh@lemmy.ca ⁨6⁩ ⁨months⁩ ago

    Investors love job losses

    Once again confirming how sociopathic the stock market can be.

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    • Ragnarok314159@sopuli.xyz ⁨6⁩ ⁨months⁩ ago

      It’s because of the massive short term gains.

      I made several thousand dollars in the stock market by buying stocks that announce layoffs. They almost always jump after the announcement unless it has to do with other circumstances like bankruptcy.

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  • KingThrillgore@lemmy.ml ⁨6⁩ ⁨months⁩ ago

    They did more layoffs yesterday and the stock price went down lol

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  • ours@lemmy.world ⁨6⁩ ⁨months⁩ ago

    Yeah but the longer term doesn’t looks good.

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• Pohl@lemmy.world ⁨6⁩ ⁨months⁩ ago

  My dude, never underestimate wall streets ability to ignore tsla failing. They will hold that stock. Shorting tsla is a fools errand. The people who own tsla are immune to reality.

  Everything good that tsla owners were banking on has already happened. The gravy days are in the past but… the insane valuation persists.

  You cannot short stupidity.

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