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Elon Musk is feeling bad about the economy and will lay off

US carmaker Tesla is halting hiring worldwide and will have to lay off 10% of its current employees. This could be up to 10,000 employees.

According to available information, Elon Musk was supposed to mention this news in an email to executives. He also added that he believes the economy is facing tough times.

Musk wrote in an email to executives at the automaker that he has a “super bad feeling” about the economy right now. The company currently employs nearly 100,000 people. So laying off 10% of its workforce would mean laying off about 10,000 people.

Read also: Volkswagen could overtake Tesla in electric car sale

However, Tesla increased its global headcount by 40% last year, the biggest expansion since 2014, when the company had just over 10,000 workers. So potential layoffs might not be such a strong indicator of potential problems.

But Tesla hasn’t signaled a slowdown in growth, opening two new vehicle assembly plants in the last quarter, achieving record global sales and Musk predicted even higher growth later this year. The news of the layoffs, therefore, spooked investors somewhat.

Tesla logo on screen and Elon Musk in a background

China is now an important topic for Tesla

For the company, the commodity situation in China, where Tesla has a factory, is still a problem. More than 10,000 people there live in a covid bubble, living in old factories and in complete isolation, which should prevent employees from contracting covid. The workers should live in this bubble until at least June 10. This big settlement shows us that Chinese manufacturing is still very crucial to Tesla.

The end of working from home and a return to the office

Musk this week asked employees to stop working from home and return to the office. If some of them don’t like it and don’t show up for work, Tesla will take it to mean they no longer work there, he said. Musk also stated this in an internal communication that was leaked on social media.

Bruno is an Investment enthusiast with several years of experience in the industry. He enjoys following the latest news and technology trends...

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