Tesla had around $29 billion in cash and short-term investments at the end of 2023. That cash cushion gives Tesla plenty of breathing room but not enough to avoid major layoffs. If there's any type of company that can burn through cash at a ferocious rate during a downturn, it's an auto manufacturer.

Tesla stock continued to drop after shares closed below an important level of support earlier in the week. The recent action leaves investors wondering where shares are headed as the company’s first-quarter earnings report approaches.