Tesla CEO Elon Musk was reported by Reuters as saying that he has a “super bad feeling” about the US economy, and wants to cut about 10% of jobs at the electric car maker.
This caused Tesla’s share price to crash 9.2% on Friday, weighing down on the NASDAQ index and Cathie Wood’s flagship ARKK fund.
What does this mean?Tesla hires about 99,000 staff worldwide in its electric vehicle factories in the United States, China and Germany. Cutting 10% of jobs would represent about 10,000 job losses.
The job cuts come as a surprise to many as demand for Tesla cars remains strong despite rising concerns of a recession.
In the first quarter alone, Tesla delivered over 310,000 vehicles, increasing from close to 185,000 vehicles delivered in the same quarter last year.
The growth in production was applauded as it came through despite supply chain constraints and
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