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Tesla Employees Who Were Laid Off Have Filed a Class-action Lawsuit, Adding Another Concern for Investors.

Elon Musk’s “very terrible feeling” about the economy has been on the minds of Tesla (TSLA) investors since Reuters reported on an email from the CEO in early June. His strategy for coping with the economic downturn was to cut down on his personnel.

In recent weeks, Musk’s stance on employment has been more obvious. Despite this, the CEO anticipates the business’s overall workforce to rise in the next quarters, as the company aims to increase its production of electric cars.

There will be around 936,000 Teslas on the road in 2020. In 2022, Wall Street predicts that 1.4 million units will be supplied. In 2023, that figure is predicted to rise to over 2.1 million.

Tesla CEO, Elon Musk remarked on Tuesday that “a year from now, I expect our headcount will be larger.” There will be a 3 to 3.5 percent drop in headcount for the time being.

Tesla is being sued by 3% to 3.5 % of its customers, who aren’t satisfied. According to Reuters, the complaint claims that Tesla violated federal law by failing to provide enough notice to employees.

In his speech, Musk referred to the complaint as “trivial.” We reached out to Tesla and an attorney for the employees, but neither responded right away.

As far as Tesla stockholders are concerned, Musk is probably correct. The lawsuit is unlikely to have a significant impact on the stock price of the electric vehicle manufacturer. The challenge initiated by salaried staff is unlikely to have a significant impact on Tesla’s share price or on the status quo regarding the unionization of Tesla’s hourly employees, notwithstanding the importance of employee relations.

Many of Tesla’s hourly employees are not unionized, unlike those at Ford Motor F –0.18% (F) or General Motors GM +1.46% (GM) (GM). Investors pay careful attention to unionization campaigns, even though unions aren’t inherently bad or good for a company’s stock.

FedEx, on the other hand, has fewer unionized personnel than UPS (FDX). Shares of UPS have risen by 57% in the last five years, while FedEx shares have increased by 8% in the same time. Over the same period, the S&P 500 has risen by nearly 51%.

Tesla investors will be more concerned about Musk’s acquisition of Twitter (TWTR), the demand for electric vehicles (EVs), new EV competitors, cost inflation, and production rates at the company’s new and current manufacturing facilities.

Problems with employment aren’t going to make it into the top five.

As of yet, it’s too soon to draw any conclusions. 3.1 percent was added to Tesla’s share price in premarket trading. S&P 500 SPX +0.22 percent and Dow Jones Industrial AverageDJIA –0.13 percent futures were up nearly 1.7 percent and 1.5%, respectively .’s

The post Tesla Employees Who Were Laid Off Have Filed a Class-action Lawsuit, Adding Another Concern for Investors. appeared first on Best Stocks.

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