😨 Tesla is making its largest layoff ever

PLUS: Warner Bros shines at the box office; Disney issuing lifetime bans.

Yesterday’s market performance 🏆️ 

S&P 500: -1.20% 📉
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Dow 30: -0.65% 📉 
Russell 2000: -1.37% 📉

TOP STORY
👀 Tesla announces the company's largest layoff ever: 10% of its workforce, 15,000 employees

📸 InvestorPlace

On the same day, two high-profile executives, Rohan Patel, VP of Public Policy, and Drew Baglino, Tesla’s SVP of Powertrain and Energy, also decided to leave Tesla due to "big overall changes" at the company.

Uh-oh.

The mass layoffs follow Tesla's first year-over-year sales drop in three years, which you know by now, and there's an expectation of much lower sales growth in 2024.

📉 Tesla ($TSLA) stock was down 5.59% on the news.

Here’s what Elon Musk had to say…

In an internal memo, Musk explained that layoffs are necessary in order to reduce costs and improve Tesla's productivity, pointing out that Tesla's rapid growth over the years has led to duplicated job roles.

To sum up, if too many cooks are in the kitchen, someone will get burned.

Musk also emphasized the need for Tesla to be "lean, innovative, and hungry" to prepare for future growth; it really sounds like he’s hyping up the Tesla team for color war.

ENTERTAINMENT
🥳 Warner Bros is having a fantastic start to 2024

📸 Knight Edge Media

In the first 15 weeks of the new year, Warner Bros.'s ($WBD) international box office earnings reached $1 billion, the fastest the studio has ever hit this milestone, surpassing the previous record set in 2018.

While I believe that incredible shows like Succession and The Sopranos are Warner's most valuable assets, their studio division seems to be still the heaviest hitter.

Who would’ve thought? Of the studio’s $1.04 billion grossed outside of North America, $411 million has come from "Dune: Part Two," with another $278 million from "Godzilla x Kong."

Other significant contributors included "Wonka," which earned $164 million, and "Aquaman and the Lost Kingdom," which brought in $130 million.

📈 Warner Bros. Discovery ($WBD) was up 0.24% yesterday

ENTERTAINMENT
 Disney parks to start banning guests who lie about having disabilities

In the wake of the proxy battle that nearly ripped Disney apart, the Mouse and Co. have a brand-new obstacle to overcome: people faking disabilities.

We're dead serious. In recent months, there has been a significant surge in fraudulent claims seeking to exploit the disability service to cut lines and gain other perks.

Here’s how it works:

  • First, individuals falsely declare that they have a disability that qualifies them for DAS (Disability Access Service), allowing them to bypass standard waiting lines for attractions and gain other perks.

  • DAS enables these individuals and their groups to experience more attractions in less time than other park visitors, which isn’t fair.

What's Disney gonna do about it? Starting on May 20, Disney's Orlando parks will require DAS registrations to be completed via virtual video chat, eliminating in-person registration at theme park Guest Relations locations; the same thing will begin on June 18 at Disneyland in California.

What happens if you’re caught?

  • Disney will issue lifetime bans to individuals who falsely claim disabilities to access Disability Access Services (DAS).

  • Guests will also forfeit any previously purchased passes, tickets, and other park services without a refund.

It's best not to mess with Mickey and his friends. 

📈 Disney ($DIS) is down 3.77% this week

Here’s what else you might’ve missed…

Lockheed Martin ($LMT) was awarded a $17 billion contract for US missile defense.

Over 576,000 Roku ($ROKU) accounts were compromised in a data breach.

Fanatics is looking to make a Comic-Con for sports.

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