It takes quite a lot of conviction for a laid off employee to invest in the very company that fired him. Yet, this is exactly what has occurred in the case of Mike Billett, a former sales leader at Tesla.
We reported back in April that Tesla was on course to slash its global headcount by over 10 percent or around 15,000 employees. The move was aimed at shoring up the EV giant's deteriorating finances in the face of persistent demand-related headwinds. We deduced at the time that Tesla could reasonably eke out annual savings of around $500 million through its sweeping layoffs, based on the company's median non-CEO salary of around $34,000 in 2023.
Happy EOQ @Tesla team!
There’s no doubt you are all adjusting to a “new norm” post layoffs and I’m wishing you all the best as you continue to drive new records while providing an exceptional experience.
Those of us impacted by the layoffs continue to root you on!
Keep…
— Mike Billett (@MikeBillettJr) June 30, 2024
This brings us to the crux of the matter. Even after being laid off, Billett has continued to maintain a very positive view of Tesla, going so far as to declare that he was rooting for the EV giant's success.
Took my severance and put 100% into the company that laid me off.
Why?
Because I spent 6 years working towards helping it grow and believe in the future impact it will have.
Let’s keep saving the world one Tesla at a time! 💪🏽⚡️🔋 pic.twitter.com/DMU5jk3wqf
— Mike Billett (@MikeBillettJr) July 9, 2024
What's even more striking is the fact that Billett has invested "100%" of his severance pay in Tesla shares!
Meanwhile, Tesla appears to be emerging from its prolonged demand-related slump and is racing toward a firmer footing. As we noted yesterday, after two blistering rallies, with the first one predicated on heightened expectations around the Tesla robotaxi that is slated for an unveil in August, and the second bullish wave unleashed in the aftermath of a better-than-expected Q2 2024 deliveries report, the EV giant's shares have erased all of their steep losses for the year.
For the benefit of those who might not be aware, Tesla disclosed on the 02nd of June that it delivered 443,956 units in Q2 2024 against a production level of 410,831 units. Do note that, as per Tesla's IR-compiled consensus estimate, Wall Street analysts expected the EV giant to deliver 437,800 units in Q2.
$TSLA: Goldman Sachs Raises target price to $248 from $175
The firm updated its 2024 EPS estimate including SBC to $2.05 from $1.90, primarily reflecting higher deliveries, and increased its multiple to reflect increased market multiples and investors being likely to be more…
— *Walter Bloomberg (@DeItaone) July 10, 2024
It is hardly a surprise, therefore, that Wall Street is slowly turning bullish on Tesla again. As an illustration, consider Goldman Sachs' latest investment note wherein the Wall Street titan has raised its price target for Tesla shares to $248, which reflects higher deliveries and increased market multiples. Goldman does caution though that it expects "weaker market conditions to weigh on earnings in the near to intermediate term."
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