Benzinga - by Zaheer Anwari, Benzinga Contributor.
- Elon Musk has terminated most of Tesla's Supercharger team following a conflict with a senior executive.
- Despite the recent layoffs, Tesla plans to continue expanding the Supercharger network, with an investment of over $500 million.
- Tesla's stock has been volatile, currently struggling to overcome the $200 mark, which is crucial for potential recovery.
The Supercharger network, crucial for supporting Tesla's electric vehicles, consists of over 6,200 charging facilities worldwide and is a cornerstone of Tesla's infrastructure.
Despite these layoffs, Tesla remains committed to expanding this vital network. The company has allocated over $500 million solely for the expansion of the Supercharger facilities, not including operational costs. This highlights the scale and importance of Tesla’s future plans for the network.
However, the layoffs have caused frustration among contractors and municipal governments that have invested in long-term engagements with the Supercharger network.
Their investments, aligned with Tesla’s previous strategic plans, now face uncertainty, potentially affecting future collaborations. In an effort to stabilize the operation, Tesla has started quietly rehiring some members of the Supercharger team.
On the financial side, Tesla’s stock performance mirrors the company's turbulence. The stock has dropped by 29% so far in 2024. In March, it fell to lows of 43% for the year, hitting levels not seen since January 2023.
Currently, the stock is highly volatile, fluctuating between a support level of around $100 and resistance at about $300, which were the lows and highs of 2023. The immediate challenge for Tesla’s stock is to surpass the $200 mark, just under $30 above its current level.
Crossing this obstacle is crucial for any potential recovery. Failure to do so might push the stock back towards the $100 support level, and breaking below this level could lead to further declines in market value.
Tesla's stock would need to rise by 135% to reach its all-time high of $414 in November 2021. Achieving this will require significant effort and strategic management of the company's current challenges.
After the closing bell on Thursday, May 16, the stock closed at $174.84, trading up by 0.49%.
This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.
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