Tesla CEO Elon Musk plans to reduce jobs at the electric carmaker based upon a “super negative feeling” he feels about the economy, Reuters reported Friday.
According to the Reuters report, Musk stated that he must reduce his workforce by 10% in an email sent out to company executives.
The memo, entitled “pause all hiring worldwide”, was sent two days following Musk’s criticism of remote work. It stated that employees who do not return to their offices should search for other jobs.
In a follow up email to workers, he stated that “if you don’t turn up, we will assume that you have resigned.”
Tesla shares fell more than 7% on Friday due to the report regarding anticipated layoffs. U.S. regulators are also investigating Tesla for complaints that its electric cars are braking without a reason.
According to a May filing with Securities and Exchange Commission, Tesla employs approximately 100,000 people around the world. An estimated 10,000 layoffs would be possible if the workforce was reduced by 10%.
This report comes as other tech companies are reversing their hiring plans due to economic uncertainty. Meta, Uber, and Twitter have slowed down or stopped hiring while Netflix, Peloton, and Robinhood are cutting back on workers.
Tesla stock has lost almost one-third its value since April 1, shortly after Musk suggested buying Twitter.
Tesla shares dropped $55.66 or 7.2% to $719.34 during early trading Friday. Two months ago, shares were trading at $1,150.
Friday’s report also revealed that over 750 Tesla owners complained that their partially-automated driving systems suddenly stopped working on roads.
In a detailed information request to Tesla, the National Highway Traffic Safety Administration disclosed the number. It was posted on the agency’s website.
This is the fourth formal investigation into the Texas automaker over the last three years. NHTSA has been supervising 23 Tesla recalls from January 2021.
