Elon Musk’s “Super bad feeling” About The Economy: A Targeted 10,000 Staff Cut

Elon Musk sent out an internal email, calling for a hiring halt and for 10% of its staff to be fired.

Musk’s concerns for tesla are not thought to be idiosyncratic. Tesla has not shown any signal of a potential slowdown, they’ve opened 2 new vehicle assembly plants, and record sales and production. However, analysts have expressed concerns about Tesla’s expansion into China given their COVID-19 policy action. Analysts have down estimated production figures.

How will the increased dependency on China affect Tesla’s future growth valuations? Whether this be a logistical issue, or, a political issue? Something to watch out for.

In line with the US broader market, Musk is adapting his expectations on the state of the economy in the near future. With inflation hitting historical highs and the expected (albeit late) tightening on monetary policy, it would be sensical to be forward-looking into gaining cost advantages to cement a cushion for any potential escalation.

The car industry has been particularly hurt by rising commodity prices, supply-side shortages, and lower consumer demand.

Perhaps Elon’s aggressive tone in his recent email, regarding remote work, was not just an efficiency concern. But also the concern of an unharmonised labour force in response to any headwinds that may come – hence, the summoning for seniors to increase their visibility just as Elon did to avoid possible bankruptcy.

It’s likely there is more to come from Tesla and many big corporations.

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