According to Reuters, Elon Musk, Tesla CEO, has a “super bad feeling about the economy aEUR”, so much that he is telling company executives to stop hiring and to cut staff.
Musk stated that Tesla must reduce its workforce by 10% in an email titled “Pause all Hiring Worldwide”.
The company didn’t respond to our request for comment.
Musk’s email comes as stock markets are plummeting this year due to fears that the U.S. economy will go into recession. The Federal Reserve is raising interest rates aggressively in an effort to combat high inflation.
On Friday, President Biden commented on Musk’s comments.
Biden replied, “You know, lots luck on his trip the moon,” to reporters.
Musk replied later with his own retort, thanking Biden via a tweet.
Thanks Mr President!https://t.co/dCcTQLsJTp
Other CEOs have expressed concern about the economy recently, with Jamie Dimon, CEO of JPMorgan Chase, predicting an economic storm this week.
“Right now, it’s sunny, things are fine. Dimon stated that everyone believes the Fed can handle it at an investment conference. “That hurricane is right there, down the road, coming our way.”
“We don’t know if this is a superstorm Sandy or a minor one. Dimon said, “You better be prepared.”
These concerns are despite the fact that the labor market remains strong. Data from Friday earlier showed that U.S. companies added 390,000.000 jobs in May while the unemployment rate remained at 3.6%.
Musk’s negative feelings about the economy come as electric car sales worldwide and in the U.S. are increasing, allowing Tesla record profits in its first quarter.
Tesla is still facing supply chain and production problems due to the pandemic.
The pandemic in China earlier this year led to Tesla’s Shanghai plant being closed. This had a significant impact on its overall production.
Musk’s email follows a series leaked emails this week that showed the Tesla CEO requesting his employees return to work in-person for 40 hours per week. Or risk being fired.
