On June 2, 2022, Elon Musk sent an email to his directors writing that he his having a terrible feelings concerning the economy of the world. Furthermore, he mentioned that he wants to scale down his employment at Tesla Inc by 10% concerning his distress.
This was notified within a period of 2 days since the CEO asked his workforce either start working from the office as they did before the pandemic or resign from their job.
According to the filing of SEC, the company took 100,000 people on board the previous year.
The electric car-making company didn’t give any remark on the concerned matter with an immediate effect.
Musk titled his electronic mail as “pause all hiring worldwide” and mentioned his grievous feeling regarding the world’s economy in it. The executives at Reuters have seen a copy of this E-message.
2 days prior the CEO notified his employees that are required to resume their work from the office or they can leave the company. According to the email he sent to his executives on Tuesday, Musk straightforwardly told them each of the company’s employees has to spend at least 40 hours a week on the office premises and if someone fails to do so, the company will believe that the person has left the job. He also wrote that the executives at the senior post are expected to show up more than those at the junior post as he stays at the workplace for a longer so that the employees could see him working with them. According to him, if he didn’t work along with the employees the electric car-making company would have shut down by now.
This direct remark by The CEO of Tesla Inc regarding the economic decline and cumulative effect on the carmakers is huge and is ringing alarm bells for the entire automaking industry.
Though the industry is at risk of economic decline yet the market of electric vehicles and Tesla cars is still very powerful and the indicators of recession have not come to view.
Noting that the company had to spare no effort to resume manufacturing after lockdowns during the pandemic at its Shanghai factory. The industry had to face a costly interruption of service during the lockdown.
It is believed that Musk’s dejected viewpoint is concerned with the recent remarks made by executives like JPMorgan Chase & Co CEO Jamie Dimon and Goldman Sachs President John Waldron.
Elon Musk was also seen showing his concern towards the downfall of the economy repeatedly in his recent comments.