Electric-vehicle maker Tesla Inc.’s shares declined for the fourth consecutive session Wednesday, after a report of a hiring freeze and plans for layoffs.
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The scope of the hiring freeze and layoffs were not immediately clear. Tesla did not respond to a request for comment. Tesla and its subsidiaries had 99,290 full-time employees at the end of 2021.
Shares fell 0.2% to 137.57 on Wednesday, their fourth consecutive daily decline and the 11th decline in the past 13 sessions. Shares have declined 12.7% collectively in the four-session losing streak, and are on track for their worst month, quarter and year on record from a percentage standpoint. Shares lost support at $150 Monday, which one analyst called “a critical battle line to defend beyond further weakness.”
Reuters reported in June that Musk said Tesla needed to cut roughly 10% of its salaried positions, saying he had a “super bad feeling” about the state of the economy.
Analysts have worried about waning demand for Tesla’s vehicles in China and competition from other electric-vehicle makers. Musk’s hefty sales of Tesla stock and distractions related to his ownership of Twitter have also caused anxiety for shareholders.
In-depth: Tesla investors await clues on demand, board actions and weigh downside risks in 2023
Tesla stock has declined 61% so far in 2022, as the S&P 500 index SPX,
