Tesla is facing costs of over $350 million in the current quarter as a result of the mass layoffs initiated last week. This move, which affects 10% of its global workforce, is part of a broader strategy to prepare for the company’s next phase of growth. Tesla aims to cut costs and enhance productivity to support the launch of more affordable models by early 2025. On Tuesday, the electric vehicle manufacturer announced the development of new models using existing platforms and production lines. This approach is expected to provide better control over capital expenditures during these uncertain economic times. Despite the layoffs, Wall Street analysts remain optimistic about Tesla’s financial performance. According to LSEG data, they predict a second-quarter profit of $2.24 billion. While this figure falls short of the previous year’s earnings, it represents an improvement from the $1.59 billion first-quarter profit reported on Tuesday, which marked the company’s lowest quarterly profit in three years.
Tesla to Book Over $350 Million in Costs After Layoffs, Readying for Affordable Models
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