Tesla Inc. is scheduled today to release what many expect to be disappointing financial results for the first quarter, amid decreasing electric vehicle sales and a 40% slide in its stock value this year — and in the wake of announcing plans to lay off 10% of its workforce and a global recall of the Cybertruck. Analysts predict first-quarter operating profit margins of 7%, down from 11% last year and 19% two years ago. An earnings call is scheduled for 4:30 p.m.
Over the last year, the company has slashed prices as much as $20,000 on some models, which has also eroded profitability, negatively affected its stock price and hurt the used EV market. Earlier this month, the company said that it will lay off 10% of its global workforce, about 14,000 people, and at least one affected employee has filed a lawsuit against the company, alleging that it failed to provide adequate notice as prescribed by law.