RBC Capital analyst Tom Narayan maintained his “Buy” rating for electric vehicle maker Tesla (NASDAQ:TSLA) on Monday. His price target for Tesla was also listed at $298 per share, suggesting an upside of over 80%.
Narayan is currently ranked on TipRanks as a 4-star analyst with an average return of 7.4% and a success rate of 53.95%. He covers several auto companies such as Tesla, Ferrari, and the Mercedes-Benz Group. So far, his most profitable trade involved Mercedes-Benz from April 2020 to April 2021, which saw a return of 249.10%.
Tesla shares saw a notable 5.59% decline on Monday, thanks in no small part to news of the company’s workforce trimming initiative and the departure of two key executives. During the weekend, a leaked email from CEO Elon Musk was shared online, suggesting that Tesla would be cutting over 10% of its workforce.
Considering that Tesla had more than 140,000 employees at the end of 2023 as per its 10-K filing with the United States Security and Exchange Commission (SEC), a workforce reduction of over 10% would suggest that more than 14,000 employees would be leaving the company. That’s the largest workforce cut by number implemented by the EV maker to date.
Apart from this, Tesla SVP Powertrain and Energy Engineering Drew Baglino and Vice President for Public Policy and Business Development Rohan Patel announced their departures from the company. Elon Musk thanked both executives for their contribution to Tesla over the years on social media platform X.
Musk did explain in a later post on X that “about every five years, we need to reorganize and streamline the company for the next phase of growth.” Musk’s update suggests that Tesla may be preparing for its next set of very ambitious targets, some of which would likely be far more challenging than anything that the company has ever attempted before.
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