Tesla Inc.
TSLA
has confirmed that it will be reducing its salaried workforce by 10% in the next three months. Its staff is split at about 66% hourly and 33% salaried workers. The net reduction will amount to 3.5% as the company looks to add more hourly workers.
Tesla presently has about 100,000 employees globally. It has been hiring rapidly as it built new factories in Austin and Berlin. The layoffs have affected human resources representatives and software engineers. Many of them have been caught off-guard as they were let go immediately.
Two workers at the auto giant’s battery factory in Nevada have filed a lawsuit, alleging that the company bypassed the 60-day notification requirement under the Worker Adjustment and Retraining Notification Act. The Tesla chief, Elon Musk, has, however, dismissed the allegation. Of late, TSLA has been under scrutiny over its treatment of workers.
Battered by global supply chain issues, the auto giant has increased the prices of its luxury EVs multiple times this year, including a significant hike twice in the same week of March when it charged $1,000 extra for all vehicles equipped with long-range battery packs. It issued a comparatively smaller increase on certain Model 3s in April.
Recently it raised prices once again for all its car models in the United States in the face of the ongoing global supply-chain problems and escalating raw material costs. A combination of inflation, supply chain issues and slowed production in China are contributing factors for other automakers as well to increase prices.
Shares of TSLA have gained 8.3% over the past year against its
industry
’s 23.7% decline.
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Zacks Rank & Key Picks
TSLA carries a Zacks Rank #3 (Hold), currently.
Some better-ranked players in the auto space are
Wabash National Corporation
WNC
, sporting a Zacks Rank #1 (Strong Buy) and
Fox Factory Holdings
FOXF
and
Standard Motor Products
SMP
, each carrying a Zacks Rank #2 (Buy) currently. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
Wabash National has an expected earnings growth rate of 239.3% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.
Wabash National’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. WNC pulled off a trailing four-quarter earnings surprise of 51.26%, on average. The stock has declined 12.4% over the past year.
Fox Factory has an expected earnings growth rate of 14.9% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.
Fox Factory’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. FOXF pulled off a trailing four-quarter earnings surprise of 10.18%, on average. The stock has declined 49.1% over the past year.
Standard Motor has an expected earnings growth rate of 5.2% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 3.1% upward in the past 30 days.
Standard Motor’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. SMP pulled off a trailing four-quarter earnings surprise of 40.34%, on average. The stock has declined 3.1% over the past year.
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