Report: Musk seeks to cut 10% of Tesla’s workforce

Tesla shares fell more than 7% on Friday due to reports that CEO Ilona Maska is considering laying off 10% of the company’s employees, as well as new questions from U.S. regulators over complaints about braking electric vehicles for no reason.

On Thursday, in an email to Tesla executives titled “suspend all hiring worldwide,” Musk wrote that he had a “super bad feeling” about the economy and that the company needed to cut staff, according to Reuters.

In a May statement to the Securities and Exchange Commission, Tesla said it had 100,121 employees worldwide, including its subsidiaries.

Tesla shares have lost nearly a third of their value since early April, shortly after Musk first publicly expressed the idea of ​​buying Twitter.

At the beginning of trading on Friday, Tesla shares fell $ 55.66, or 7.2%, to $ 719.34. Just two months ago, the stock was trading at about $ 1,150.

Also Friday, government regulators said more than 750 Tesla owners complained that cars running on automakers ’partially automated driving systems had suddenly stopped on the roads for no apparent reason.

The National Highway Traffic Safety Administration disclosed this number in a letter with a detailed information request to Tesla, which was posted on the agency’s website.

This is the fourth official investigation by the Texas automaker in three years, and NHTSA has been monitoring 23 Tesla recalls since January 2021.

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