Tesla (NASDAQ:TSLA) analysts of Global Equities Research see a demand recovery for the EV company starting in August 2023 and previously laid-off tech workers are finding new jobs due to the AI boom.

Analysts highlight that the demand for Tesla vehicles is a function of tech layoffs, and they believe the majority of the tech layoffs will complete by July.

They highlighted that at recent hackathons, almost 60% of hackers had lost their jobs. These hackers are now reinventing themselves in the AI world and getting multiple job offers at about a 5-10% haircut to their prior tech jobs before they were laid off.

Analysts said they asked a few of these hackers, what large purchases they plan to do once they get a job. Their top answer to the question… “Will buy a Tesla”.

Analysts believe Q2 will be the bottom for Tesla revenue, with a slight recovery in Q3 and normalized demand in Q4. They see 2024 back to 50% or more revenue growth rates for the company.