Elon Musk's Tesla is poised to incur more than $350 million in expenses in the second quarter due to the mass layoffs that started last week.

According to Reuters, this move comes as Tesla shifts its focus to developing more affordable models that will be introduced by early 2025.

'Next Phase of Growth' of Tesla

The decision to lay off approximately 10% of its global workforce is to streamline operations in preparation for the "next phase of growth," primarily to decrease costs and enhance productivity.

Tesla indicated that it is actively working on creating new models utilizing its existing platforms and production lines. It is anticipated to provide better control over capital expenditures amid uncertain market conditions.

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$2.24 Billion Profit Projection

According to data from LSEG, analysts on Wall Street are projecting a profit of $2.24 billion for Tesla in the second quarter. While this forecast represents a decrease compared to the previous year, it marks an improvement from the $1.59 billion profit reported in the first quarter, which was the lowest in three years, Reuters reported.

The electric vehicle market has experienced a slowdown in demand over the past year, partly attributed to high borrowing costs that prompted consumers to reconsider purchases.  

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