Elon Musk isn’t feeling confident about the economy shortly. Despite his attempt to buy Twitter for frivolous reasons for $44 billion, the billionaire Tesla boss is thinking about cutting his staff. Musk believes there are rough waters ahead for his electric car brand.
A message obtained by Reuters was sent to Tesla’s staff on Thursday revealed that Musk wants an immediate pause on all hiring worldwide. That came two days after Elon told his staff they had two days to return to the office or they would be fired. It appears the shine is coming off of the company, which has been rumored to be overvalued for years.
Tesla shares dropped 9% on the news of the report. In the memo, Elon Musk said Tesla will be reducing salaried staff by 10%. He noted that workers who earn an hourly wage, typically on the lower end of the salary spectrum, would increase.
Tesla employed nearly 100,000 people at the end of 2021. Those numbers were not broken down between salaried and hourly workers in any public filings. Representatives from Tesla have not commented on the matter.
When President Joe Biden was asked about Tesla’s struggles, he simply cracked a joke. He wished Elon lots of luck on his trip to the moon. Elon Musk recently decided to turn into a Republican after news of a sex scandal broke and immediately became one of Biden’s most visible critics.
Time will tell if Elon Musk goes through with the massive layoffs. The chickens could be coming home to roost for Tesla, whose stock price has been manipulated on the very platform he hopes to buy for years. Maybe the economy will be better on the moon.