The electric carmaker Tesla is planning to put a hiring freeze and layoffs may begin soon, according to a
report by news website The Electrek.
The report, however, said it’s not clear how extensive the hiring freeze will be as Tesla is still planning to expand in some manufacturing locations.
This would be the second round of layoffs at the electric car company after
more than 500 employees were let go in June.
Tesla investors have raised concerns over Chief Executive Elon Musk’s distraction with managing the microblogging platform Twitter.
Musk in June said Tesla would reduce its salaried workforce by roughly 10% over the next three months, which is likely to affect nearly 10,000 employees.
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In an internal memo, he said he had a “super bad feeling” about the economy, Musk, however, clarified the company would hire more hourly workers and cut 3.5% of its overall staff.
Meanwhile, Musk on Thursday said he would be stepping down as the CEO of Twitter once he finds a replacement.
Tesla’s stocks have lately been under pressure as Musk comes under fire for his handling of Twitter.
After taking over Twitter in a $44-billion deal,
Musk sacked roughly 3,700 employees from the company.
Musk, whose fortune is primarily made up of Tesla stock and options, has recently seen a massive decline in his wealth amid slumping Tesla stocks.
He even lost the world’s richest person title this month to LVMH’s Bernard Arnault.
Last week, Tesla stocks dropped to a two-year low, falling to $150.04—its lowest point since November 2020. On Tuesday, it hit a record low of $137.80.
This drop in Tesla’s shares is reportedly due to Musk’s recent acquisition of Twitter. According to Bloomberg, Musk’s net worth has plummeted by $7.7 billion to $147.7 billion, the lowest in more than two years.
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