“We will be closing some stores, some reduction in headcount as a result,” CEO Elon Musk said during an after-hours Thursday call with reporters. In the call, Musk also said that Tesla won’t make a profit during the first quarter. “I wish there was some other way. Unfortunately, it will entail a reduction in force on the retail side. There’s no way around it.”
Musk also said, “We do think that profitability in Q2 is likely.” However, that spark of optimism wasn’t enough to lift Tesla stock on Friday, which fell by 25.18 points (-7.87 percent).
Tesla was the biggest loser on a relatively positive day for the Entrepreneur Index™. The exchange was up by 0.60 percent today, while other indexes like the S&P 500 and Dow 30 were down.