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Elon Musk, CEO of Tesla Inc. (NASDAQ:TSLA), has hinted at a significant restructuring of the company in response to a post on X.
What Happened: On Wednesday, Musk responded to a post by Teslaconomics, which highlighted a statement made by the billionaire during Tesla’s Q1 earnings call.
“This is the main reason Elon is re-organizing Tesla,” the X user posted on the social media platform.
“We’re not giving up anything that is significant that I’m aware of. We’ve had a long period of prosperity from 2019 to now. And so, if a company sort of organizationally is 5% wrong per year, that accumulates to of inefficiency,” Musk said.
During the call, he compared a company to an organism, stating that it needs to be reorganized for different growth phases to avoid failure.
“We’ve made some corrections along the way. But it is time to reorganize the company for the next phase of growth and you really need to reorganize it, just like a human when we start off with one cell and kind of zygote, kind of blastocyst and you start growing arms and legs and briefly, you have a tail. But you shed the tail. You shed the tail, hopefully. And then you’re a baby, and basically, you have to be the organism — a company is kind of like creature growing.”
Musk responded to this clip, “No choice.”
Why It Matters: Musk recently commented on the importance of vehicle autonomy for Tesla. He described the commitment to autonomous driving as a “blindingly obvious move,” likening everything else to variations on a horse carriage.
Moreover, Musk’s tweet aligns with his recent actions that suggest a shift in strategy. Following the layoffs of over 10% of Tesla’s global workforce, Musk liked a social media post suggesting he was re-entering “wartime CEO” mode and focusing the company entirely on its robotaxi project.
Price Action: As of Tuesday, Tesla’s stock closed at $144.68, a 1.85% increase from the previous close. The company reported Q1 earnings of $0.45 per share, slightly below the estimated $0.51 per share. On Wednesday, the stock was trading 10.6% higher at $160.06 in the pre-market.
Photo via Shutterstock
This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Posted In: TSLA
