ChargePoint Holdings Inc. (CHPT) shares witnessed a significant decline of 6.3% on Monday, trading at $1.28. The broader electric vehicle (EV) sector has been experiencing a downturn, largely attributed to Tesla’s decision to reduce vehicle prices in major markets and Rivian Automotive Inc.’s recent workforce cutbacks due to industry slowdown. The sector has also been impacted by Tesla’s recent layoffs of around 10% of its workforce.
Amidst ongoing challenges, Tesla faces a new issue with its Cybertruck. The windshield-mounted gear selector panel, intended as a backup to the touchscreen, has reportedly fallen off for one owner. This incident highlights concerns about the durability of the panel, which also supports the sun visors. Former Tesla engineer Christina Balan shared photos of the issue, suggesting a design flaw. It remains unclear if the problem will become widespread or if the board will address the issue given the company’s current difficulties.
Tesla has laid off its US “growth content” team as part of company-wide layoffs, discontinuing an advertising push approved by CEO Elon Musk less than a year ago. The team of 40 employees, led by senior manager Alex Ingram, was responsible for creating marketing content. Significant layoffs also occurred in Tesla’s design studio in California.
Despite initial announcements that Tesla would lay off 10% of its workforce, sources familiar with the company’s planning indicate that the layoffs may have affected a larger number of employees, with Musk reportedly seeking a 20% workforce reduction. The layoffs primarily affect the Model 3 and Model Y production lines, as Tesla faces slowed sales and increased competition in China.
Tesla’s tumultuous year continued with a significant 4% drop in share prices on Monday, marking a decline of nearly 43% since the start of the year. This setback is attributed to a series of challenges, including price cuts, product recalls, layoffs, and intense competition in the electric vehicle market.
Tesla has further reduced prices for three of its five models in the US, offering discounts of $2,000 on the Model Y, Model X, and Model S. The move comes as the company faces challenges following reports of falling sales, increased competition, and a decline in stock value. Despite earlier price cuts, Tesla’s worldwide sales dropped from January to March. The company has also delayed plans for a $25,000 Model 2 electric vehicle and announced layoffs of 10% of its global staff. These developments underscore the ongoing challenges for Tesla amidst a rapidly evolving automotive landscape.
Tesla has implemented price reductions in the US, China, Germany, and other regions to address a recent dip in sales. The Model Y, Model X, and Model S in the US have received discounts of around $2,000. China’s Model 3 has been reduced by $1,930, while Germany’s has dropped by €2,000. Amidst competition from Chinese electric vehicle manufacturers, Tesla faces a price war and has reduced its workforce by 10%. Elon Musk’s shift towards driverless Robotaxis may have impacted the development of the more affordable Model 2. Despite these measures, Tesla’s share price has fallen below $150, prompting concerns among investors ahead of the company’s Q1 earnings announcement.
Major U.S. stock indexes opened higher on Monday as investors digested earnings reports from Big Tech companies. Tesla (TSLA) and Li Auto (LI) saw their shares decline after announcing price cuts, while Apple (AAPL) remained flat. Verizon (VZ) reported mixed quarterly results, while Salesforce (CRM) abandoned acquisition talks. Other notable moves included a drop in Quanex (NX) after a planned acquisition and a decline in Cardinal Health (CAH) due to the termination of contracts with OptumRx.
Electric car sales continue to surge, with a 60% jump in 2022. U.S. News & World Report has released its list of best electric and hybrid vehicles for 2024, including top luxury and non-luxury options. Hyundai dominates the list, with the Ioniq 5, Ioniq 6, and Tucson Hybrid winning multiple awards. Notably, Tesla is absent from the winners despite its significant market share.
Tesla has significantly reduced the price of its partially automated driving system, ‘Full Self Driving’ (FSD), from $12,000 to $8,000. Customers can also subscribe to the feature for $99 per month. FSD includes features such as auto lane changes, auto parking, and lane keeping on surface streets. Tesla claims that FSD will enable cars to drive themselves with minimal driver intervention, but emphasizes that active supervision is still necessary and the vehicle is not fully autonomous. Despite safety concerns and a recent recall, FSD remains crucial to Tesla’s future plans, as the company aims to develop a robotaxi service leveraging the system.
