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Tesla Inc CEO Elon Musk stated that the electric carmaker needs to reduce staff by nearly 10%, indicating that he had a “super bad feeling” about the economy.
Source: Bloomberg
TSLA down -8.24%, F down -2.88%
The email, headed “pause all hiring worldwide,” was distributed to Tesla senior executives.
Tesla had not been pointing to a potential slowdown, with the launch of two new vehicle assembly plans, record high global sales in its most recent quarter, and a forecast from Musk for “substantially higher” growth for the year.
Dan Levy, an analyst at Credit Suisse, stated the headline is a major surprise due to the significant growth and expansion path for Tesla.
Meanwhile, COVID-related restrictions in China have hampered output at the company’s Shanghai plant, raising questions from analysts about whether Tesla will meet its goal of 50% annual growth in deliveries.
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