Tesla CEO feels ‘super bad’ about economy, needs to cut 10% jobs

Tesla CEO feels ‘super bad’ about economy, needs to cut 10% jobs

Reuters / San Francisco

Tesla CEO Elon Musk has a “super bad feeling” about the economy and needs to cut about 10% of jobs at the electric carmaker, he said in an e-mail to executives seen by Reuters.

The message, sent on Thursday and titled “pause all hiring worldwide”, came two days after the billionaire told staff to return to the workplace or leave, and adds to a growing chorus of warnings from business leaders about the risks of recession.

Almost 100,000 people were employed at Tesla and its subsidiaries at the end of 2021, its annual SEC filing showed.

The company was not immediately available for comment.

Tesla shares fell nearly 5% in US pre-market trade yesterday and its Frankfurt-listed stock was down 3.6% after the Reuters report.

US Nasdaq futures turned negative and were trading 1% lower.

Musk has warned in recent weeks about the risks of recession, but his e-mail ordering a hiring freeze and staff cuts was the most direct and high-profile message of its kind from the head of an automaker.

So far, demand for Tesla cars and other electric vehicles (EV) has remained strong and many traditional indicators of a downturn — including increasing dealer inventories and incentives in