- Elon Musk sent an internal email warning of the needs for cuts amid a gloomy economic outlook across world
- But he did not elaborate on why he was worried in the brief message and did not comment on Twitter takeover
- Tesla stocks were immediately down in pre-market trading after the comments – which were leaked Thursday
- The electric car company’s share price plummeted 3.3 percent early Friday, while Dow Jones sunk 0.5 percent
Elon Musk has told top executives they need to slash Tesla jobs by 10 per cent and pause hiring worldwide because he has a ‘super bad feeling’ about the economy.
The billionaire sent an internal email warning of the need for cuts amid a gloomy economic outlook due to inflation and the brutal war in Ukraine.
But he did not elaborate on why he was worried in the brief message and did not comment on whether it would affect his $44billion Twitter takeover.
Tesla stocks were immediately down in pre-market trading following the comments, which were leaked to Reuters on Thursday night.
The electric car company’s share price plummeted 3.3 percent early Friday, while Dow Jones sunk 0.5 percent, S&P 500 slid 0.7 percent and Nasdaq fell 1.2 percent.
It comes as the firm faces another setback as regulators in the US probe a swarm of complaints about ‘phantom braking’ in its Model 3 and Model Y cars.
More than 700 customers have pointed out their vehicles suddenly came to a halt while traveling at high speeds – double the number of grievances last year.Â
Musk has warned in recent weeks about the risks of recession, but ordering a hiring freeze and staff cuts was the most direct and high-profile message of its kind.
Remotely addressing a conference in mid-May in Miami Beach, he said: ‘I think we are probably in a recession and that recession will get worse.’
By Chris Matthews
