NEW YORK, June 4 — Tesla Elon Musk’s “super bad feeling” about the economy could be the auto industry’s “canary in the coal mine” moment, signaling a recession for an industry whose bosses have shown no signs of concern.
“If the world’s largest EV company warns on jobs and the economy, investors should reconsider their forecasts on margins and top-line growth,” he added. Tesla stock fell 9 per cent. Ride-hailing companies Uber Technologies Inc UBER.N and Lyft Inc said last month they would scale back hiring and curtail spending, while online used-car retailer Carvana said it would cut 12 per cent of its workforce.“We are not as pessimistic as Elon Musk, but are being cautious about our hiring and expenditures,” said John Dunn, Americas CEO for Clean Energy Systems, a Plastic Omnium unit that makes fuel and emissions-reduction systems.
And industry officials also point out Tesla has its own issues, including possibly hiring too fast compared to its growth.