“I don’t think if Tesla becomes profitable in Q3 and Q4, that will be sustainable because of ramping up of the production,” said Efraim Levy, an analyst at CFRA Research. “The layoffs may help them to achieve profitability in the near-term but not sustain it.”

Tesla-Heavy ETFs React Positively

ETFs with heavy exposure to Tesla all reacted positively by the close of the market. ARK Industrial Innovation ETF (NYSEArca: ARKQ) was up 0.77%, VanEck Vectors Global Alternative Energy ETF (NYSEArca: GEX) was up 0.48%, First Trust NASDAQ Clean Edge Green Energy Index Fund (NYSEArca: QCLN) was up 0.90%, and ARK Innovation ETF (NYSEArca: ARKK) was up 0.87%.

Related: 3 Reasons Tesla Investor Confidence Matters Now

“The pressure is on for Tesla to cut the red ink as the third quarter approaches,” said AutoPacific analyst Dave Sullivan. “Cutting your way to profitability as you try to grow and launch vehicles is very difficult. It’s hard to believe Tesla had enough fat to trim in their salaried ranks. I expect Musk to push and pull more levers in the next few months as the push for profits continues.”

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