To The Moon

Intro. I have approached this subject in a post, dated 06 May 2024 (click here! to read about it). Much have happened since then. As much as $Tesla Motors(TSLA)$’s fans do not like to hear it, things seemed to have taken a turn for worse. Suffice to say, most corporates in the US subscribed to the “hire & fire” policy. This is where a company scales up quickly on the run up to a boom and downsize immediately at the slightest turn of event. In the case of Tesla faced with falling demand, what has begun as price slashing to drive up demand, has given way to staff layoff (at a gathering pace) in a bid to keep overheads down. Is this the “best” solution for Tesla? To see the brilliant “visionaire” unable to come up with an innovative fix-it solution is simply unbelievable. Staff Exodus. (1) Rich Otto. Tesla’s head of product launches (Cybertrucks and many others) and a 7-year veteran, resigned last week. In his “LinkedIn” post, he criticized the sweeping layoffs Musk announced at the Tesla Giga-factory, saying the layoffs are “rocking Tesla and its morale.” “Great companies are made up of equal parts great people and great products”, he added. Great products are only possible, when its people are thriving, The job cuts and subsequent culture hit “have thrown the harmony out of balance. It’s hard to see the long-game and it’s time for a change.” (2) Allie, Martin, Drew & Rohan. Top HR executive (Allie Arebalo) also left Tesla. VP of Investor relations (Martin Viecha) also announced his resignation at the end of earnings Q1 2024 press conference. Senior VP, Drew Baglino (an 18 years veteran) was amongst the first to resign and cashed out his $181 million shares’ stake. VP of Public policy & Biz Development, Rohan Patel left at the same time as Drew Baglino. (3) Tesla Supercharge team. The entire team (including Tesla’s highest rank female executive) were let go at end April 2024. What complicated the fire of the entire team was that it has received $17 million in federal charging grant, to build 41 charging stations. (4) Summer interns. Even “free” labourers were not spared in the latest layoff exercise. Tesla rescinded offers to interns just before they were supposed to start. This prompted Tesla employees to implore other companies to take advantage of its bloodletting. (5) Car crash probes. Amid the job cuts, US National Highway Traffic Safety Administration (NHTSA) investigators are checking if Tesla’s online software update for Tesla's partially automated driving system, actually works. Since the fix have been updated, there have been 20 reported crashes. What made it “worse” is Musk is promoting Tesla's self-driving system to investors, saying it's better than people believe. He also says Tesla cars will eventually drive themselves completely and can be used like taxis when owners aren't using them. $45 Billion Pay Package. Amidst all the headwinds befalling Tesla, the CEO and its board of directors are still eagle focused on reinstating his pay plan of $45 billion. It is the largest-ever pay plan for a CEO in US corporate history, even after a judge rescinded it earlier this year. Decency is dead! Tesla’s past week. The above incidences have again rattled investors amid Tesla’s downturn in the past few days. (see above) Tesla stock skidded -7% last week to $168.47 per share. It is still higher than April’s low of $142.05 per share achieved on 22 Apr 2024. Technically, Tesla has tumbled back below its 50-day moving average (not good!) On 29 Apr 2024, shares round-tripped a +15% spike, after Tesla cleared key hurdles toward introducing autonomous driving in China. The vehicle lineup is aging with a limited pipeline while rivals step up, especially in China. Investors are very concerned about Tesla's growth prospects, with demand falling despite a stream of price cuts. My Viewpoints: (mine & mine only) Greek philosopher Aristotle has this quote, “The whole is greater than the sum of its parts“. And it could not have been more true in any modern corporate. Senior Staff resignation. With all its strategic “Heads” departure one after another, will fractures form in all those “vacated” department / section, crippling the car maker company eventually ? Meaning: Will the roll out of Model 2 be hampered by Rich Otto’s departure. Will Q2 2024 post earnings conference able to proceed smoothly without a hitch? Will staff’s matters (compensations - layoff, resignation), new hire, monthly salary be processed effectively without its experienced HR executive? Afterall, Mr CEO is not known for his management skills. Just look at how long it took him to backfill Twitter CEO’s role? Supercharge Team. Another thing I cannot understand, if Mr CEO had intended to get rid of its entire Supercharge team, why did they bother to accept the $17 million grant to build the additional 41 charging stations? It just made things more complicated. Full Service Driving. Has Mr CEO been caught with his pants down? $Luminar Technologies, Inc.(LAZR)$ latest quarterly earnings showed that Tesla was its “largest LiDAR customer in Q1 2024”. (see above) Just for context, Mr CEO has previously dismissed the laser sensor as a ‘crutch’ and said that any company relying on lidar to power self-driving was ‘doomed.’ Is Tesla doomed now? There is a saying that goes "A fish with its mouth shut avoids the hook!”. Looks like it aptly describe Mr CEO whose mouth works much faster (spouting “rubbish”) than the brain; resulting in a lot of verbal diarrhoea with little substance. The next time Mr CEO speaks, leave some room for doubts and discounted truth, ya? Will you be surprised to see LiDAR attached to Tesla’s robotaxis on 08 Aug 2024 in the big reveal? Must Read: Click on below titles to access. Give a like & help to repost ok. Thanks. Grab AMAZON: Buy Now or Miss Out ? Chipmaker ARM Earnings Fall. Honeymoon Over ? Time to Buy DJIA Worst Stocks - BA, IBM, HD, INTC ? Do you think Tesla will continue to consolidate in the week beginning 13 May 2024? Do you think Tesla will make use of the LiDAR purchased in its Robotaxis? Ha, ha, ha. If you find this post interesting, give it wings! ️ Repost and share the insights ? Do consider “Follow me” and get firsthand read of my daily new post. Thank you. @Daily_Discussion @TigerPM @TigerStars @Tiger_SG @TigerEvents