When Tesla (TSLA) CEO Elon Musk and Vivek Ramaswamy, tapped by President-elect Donald Trump to lead the Department of Government Efficiency, pushed for a full-time return to the office, they called remote work a “Covid-era privilege.” However, labor economists like Stanford’s Nick Bloom argue that remote work is not a passing trend but a lasting part of the U.S. job market. While some companies like Amazon (AMZN) have mandated that workers return to the office, hybrid arrangements and remote options remain common, with 25-30% of workdays still being done remotely, according to WFH Research.
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Remote work has staying power because it is profitable for companies. Indeed, studies show that productivity plateaus after three days in the office, and mandating more office days increases employee turnover, which can be a costly outcome. Bloom estimates that large companies can boost profits by tens of millions annually by reducing turnover through hybrid work.
Interestingly, 8% of job postings on Indeed in November were advertised as remote or hybrid work, which was far above the pre-pandemic level of 3%, though slightly down from its peak.
A Subtle Way to Cut Headcount
Musk and Ramaswamy are aware that full-time office mandates would increase federal employee turnover, which they welcomed in their Wall Street Journal op-ed. Similarly, some companies may use return-to-office policies as a subtle way to cut headcount, according to ZipRecruiter. While some executives cite culture and productivity as reasons for these mandates, analysts suggest such concerns might be more about perception than actual data.
Is Tesla Stock a Buy, Hold, or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 13 Buys, 11 Holds, and nine Sells assigned in the past three months, as indicated by the graphic below. After a 59% rally in its share price over the past year, the average Tesla price target of $292.03 per share implies 23.1% downside risk.
