Business Maverick: Tesla Pauses Hiring as Musk Aims for 10% Staff Cut

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Tesla Inc. Chief Executive Officer Elon Musk said the electric carmaker needs to cut staff by around 10%, noting he had a “super bad feeling” about the economy, according to an internal email seen by Reuters.

“Headline is a surprise to us given significant growth path/expansion ahead for Tesla,” Dan Levy, an analyst at Credit Suisse with an “outperform” rating on the stock, said in a research note Friday.

The report comes at a tumultuous time for Musk and the carmaker he made an EV pioneer. Tesla’s stock has slumped 22% since the billionaire struck a shock deal to acquire Twitter Inc. that now appears to have stalled. Anxiety about the global economy and the impact of China’s Covid-19 lockdown in Shanghai, where Tesla has a factory, have also weighed on the company, which has weathered worldwide supply shortages for components like chips better than most.

“That is why I lived in the factory so much — so that those on the line could see me working alongside them,” he said. “If I had not done that, Tesla would long ago have gone bankrupt.”

 

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