Tesla plans a 10% staff reduction also new hiring halted
As a result of a “super bad feeling” about the economy, Tesla Inc. CEO Elon Musk said the electric automaker needed to reduce its workforce by approximately 10%, according to an internal email obtained by Reuters.
According to the story, Tesla executives received an email labelled “pause all hiring worldwide” on Thursday.
At 9:44 a.m. in New York, shares of Tesla were down 6.7% to $722.85, impacting on the larger US market. Requests for comment made to the automaker on Friday went unanswered.
As of the most recent quarter, Tesla has not shown any signs of slowing, with two freshly opened car assembly factories, record worldwide sales volume and a promise from Musk for “substantially higher” growth later this year.
Dan Levy, an analyst at Credit Suisse with a “outperform” rating on the company, wrote in a research note Friday that Tesla’s “headline is a surprise to us given the significant growth path/expansion ahead for Tesla.”
Many experts have questioned if Tesla can fulfil its objective of 50 percent yearly increase in deliveries because of coronavirus-related constraints in China. Cowen lowered its prior forecast of 1.35 million global deliveries for the automaker to 1.28 million on Friday.