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Tesla (NASDAQ:TSLA) fell 4.5% in afternoon trading on Monday after a series of new developments. Investors were left grappling with the implications of lower pricing on the company's FSD package, an announcement by Elon Musk of global job cuts totaling at least 10% of the workforce, and the departure of two high-ranking and key Tesla (TSLA) execs.
Weighing in on the latest Tesla (TSLA) drama, Wedbush Securities said the loss of Drew Baglino is an absolute gut punch loss as he was noted to be instrumental in the Powertrain and Energy initiatives at Tesla (TSLA). Ives highlighted that he was also viewed by many as key to the Model 2 initiative over the next few years. "The pressure on the stock today is being exacerbated by the Baglino news which was very unexpected," warned Ives.
The latest twists and turns raises the stakes for Tesla's (TSLA) earnings call on April 23, when analysts are expected to try to pin down Elon Musk on the strategy with a mass-market model and timing of a viable robotaxi fleet. "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," highlighted Ives.
The electric vehicle sector had another rough session on Monday as analysts pointed to the potential for some full-year guidance cuts alongside earnings reports over the next few weeks. The decliners as of 2:20 p.m. included Polestar Automotive (PSNY) -9.6%, VinFast Auto (VFS) -9.0%, Rivian Automotive (RIVN) -8.2%, Nio (NIO) -6.3%, and XPeng (XPEV) -4.5%.