According to an internal email obtained by Reuters, Tesla CEO Elon Musk stated that he had a “super bad feeling” about the economy and that the electric automaker needs to slash workers by roughly 10%.
Tesla CEO Elon Musk has a “super bad feeling” about the economy and wants to reduce approximately 10% of the company’s employment, according to an email reviewed by Reuters.
The warning arrived two days after the world’s richest man warned staff to return to work or quit.
According to its annual SEC report, Tesla and its subsidiaries employed over 100,000 workers by the end of 2021.
The corporation did not immediately respond to requests for comment.Musk’s stern warning of a future recession and its ramifications for automakers is the industry’s most direct and high-profile prognosis of its sort.
While fears of a recession have intensified, demand for Tesla cars and other electric vehicles has remained high, and many typical markers of a slowdown, such as rising dealer inventories in the United States, have not materialised.
However, Tesla has struggled to restore production at its Shanghai facility after COVID-19 lockdowns caused costly interruptions.Musk’s pessimistic attitude is consistent with previous statements from leaders such as JPMorgan Chase & Co CEO Jamie Dimon and Goldman Sachs President John Waldron.
This week, Dimon stated that a “hurricane is right out there down the road coming our way,”
Inflation in the United States is near 40-year highs, raising the cost of living for Americans, while the Federal Reserve has the tough problem of damping demand enough to control inflation while avoiding a recession.
