During Tesla’s quarterly earnings call, CEO Elon Musk stated that the company should be considered an AI and robotics company rather than an automobile manufacturer. The company has undertaken cost-cutting measures to increase operational efficiency and is focusing on profitable growth. Tesla's stock jumped double digits on the news that it plans to showcase its purpose-built robotaxi in August and that the company’s production was accelerating on a new, lower-cost Tesla model.
Key takeaways:
- Tesla has reportedly laid off employees across several departments over the last three weeks, following its announcement of laying off 10% of its workforce.
- The layoffs are due to hiring inefficiencies and restructuring for a new phase of growth, as well as lower-than-expected vehicle deliveries and diminished financial performance.
- Tesla expects the layoffs to reduce costs by more than $350 million in the second quarter, and analysts suggest the company could be preserving cash for other projects like autonomous driving software, robotaxis, and robots.
- During Tesla’s quarterly earnings call, CEO Elon Musk stated that the company should be considered an AI and robotics company rather than an automobile manufacturer, and announced plans to showcase its purpose-built robotaxi in August.