According to electek, musk told Tesla employees that 10% of the positions planned to be cut will be limited to salaried employees. According to the news website tracking the automotive industry, musk said in his internal email that the layoffs were due to Tesla "becoming overstaffed in many areas". Musk said that the layoffs "do not apply to any department that actually manufactures cars, battery packs or installs photovoltaic modules", and the company will increase the number of hourly workers.
It is reported that musk told executives that he would lay off staff because he had a "super bad feeling" about the economy. This news triggered Tesla's share price to fall 9.4% in New York.
It is reported that Tesla suspended the global recruitment, and musk planned to cut 10% of the staff and said he felt extremely bad
Tesla said in its annual report that about 39% of its global 100000 employees are "production line employees".
Although it is still uncertain whether Tesla's total number of employees will decrease, Musk's pessimistic tone highlights that the prospects of the electric vehicle company are turning. Tesla recently opened two auto assembly plants. In the latest quarter, global sales hit a record high. It had predicted that it would achieve a substantial growth later this year.
US President Biden dismissed Musk's latest statement. He refuted the billionaire's economic warning and wished his space business success. Wall Street was also taken by surprise by Tesla news. Credit Suisse analyst Dan Levy said, "given Tesla's growth path and future growth prospects, this news surprised us.".
Some analysts suspect that Tesla may not be able to achieve the goal of 50% annual increase in delivery. Cowen lowered Tesla's global delivery forecast to 1.28 million vehicles on Friday, lower than the previous forecast of 1.35 million.
Musk also joined the heated debate on telecommuting this week, urging employees to return to the office, or they will have to find another job.
Musk wrote in his email at that time, "whoever wants to work remotely must stay in the office for at least 40 hours a week. The higher your position is, the more you should let everyone see you. That is why I live in the factory so much time, so that people on the production line can see that I work with them. If I didn't do this, Tesla would have gone bankrupt.".