On Thursday, Tesla Inc.’s shares fell below the $150.00 support level as executives pushed to reinstate a $56.00 billion pay deal for Elon Musk.
The Austin-based automaker’s stock plummeted by 3.59% to $149.86 apiece on April 18, extending the losing streak to five sessions. Furthermore, market analysts anticipate a 2.29% decline to $146.43 per share in the coming trading day.
Tesla urged investors to vote to reestablish the $56.00 billion compensation agreement, which a US judge annulled in January. The push for the biggest CEO pay package in the history of corporate America came shortly after news of another round of layoffs.
In an internal memo, Musk informed staff that the electric vehicle (EV) manufacturer would fire over 10.00% of its 140,473 employees. According to tech specialists, the layoff is a band-aid solution to help Tesla support its aggressive price cuts.
Since the latter half of last year, carmakers have been slashing prices to snatch market share. In Q4, BYD used price reductions targeting the Model 3 and Model Y to overtake Tesla and become the world’s bestselling EV brand.
Moreover, Tesla has shed 12.39% this week, deepening its losses for the current month to 14.75%. Lastly, its stock has depreciated by 39.69% this year, with its total market capitalization falling below $500.00 billion.
Elon Musk Fails to Innovate Tesla Technology
Some stakeholders have called Elon Musk a part-time CEO, getting distracted so often that the development of Tesla Tech has stalled. Others have taken it further, calling for Musk to step down if he cannot focus on leading the EV maker.
Affordable EVs with specs comparable to or exceeding those of Tesla’s flagship products have begun flooding the market. In addition, the American automaker has lost hold of China, the world’s largest market for electric mobility solutions.
For instance, BYD and Mercedes-Benz have collaborated to produce the Denza N7, which beats its Tesla counterparts in price and specs. Industry watchers expect disastrous results in the Musk-led firm’s upcoming earnings call on April 23.
