Elon Musk has a ‘super bad feeling’ about the economy and wants to cut jobs at Tesla

You’re here (TSLA) employed about 100,000 people at the company and its subsidiaries at the end of 2021, according to its annual filing with the SEC.

The company was not immediately available for comment.

Musk’s stark warning of a potential recession and the ripple effect for automakers is the most direct and high-profile forecast of its kind in the industry.

As worries about the risk of recession grew, demand for Tesla cars and other electric vehicles remained strong and many traditional indicators of a slowdown, including increased dealer inventory in the United States, did not hold. are not materialized.

But Tesla has struggled to restart production at its Shanghai factory after Covid-19 shutdowns forced costly outages at the factory.
Musk’s bleak outlook echoes recent comments from executives, including JPMorgan Chase (JPM) CEO Jamie Dimon and Goldman Sachs (GS) President John Waldron.

A “hurricane is right out there on the road coming our way,” Dimon said this week.

Inflation in the United States is hitting 40-year highs and has caused an increase in the cost of living for Americans, while the Federal Reserve faces the difficult task of reining in demand enough to dampen inflation without causing of recession.

“Suspend all hiring”

Prior to Musk’s warning, which came in an email titled “suspend all hiring globally,” Tesla had around 5,000 job postings on LinkedIn, sales in Tokyo and engineers at its new giga- Berlin factory to deep learning scientists in Palo Alto.

Musk’s request for staff to return to the office has already been rebuffed in Germany.

“Everyone at Tesla is required to spend at least 40 hours in the office per week,” Musk wrote in his Tuesday email. “If you don’t show up, we’ll assume you quit.”

Musk also engaged in a Twitter spat with the Australian tech billionaire on Thursday and Atlassian (CREW) co-founder Scott Farquhar, who derided the directive in a series of tweets as being “like something from the 1950s”.

Musk tweeted: “recessions serve a vital economic cleaning function” in response to a tweet from Farquhar that encouraged Tesla employees to look into his remote workstations.

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