Tesla CEO, and the world’s richest person, Elon Musk is about to fire 10% of the company’s employees, amid the possibility of a future economic recession.
Musk said he has a “super bad feeling” regarding the economic situation of the country.
Elon Musk Warns About Economic Recession
As per the SEC filing, Tesla had nearly 100,000 employees by the end of 2021, so Musk’s message suggested at least 10,000 job cuts in a single company.
Recently, Musk also warned his employees to return to offices and end work from home culture or be ready to be fired.
Not only this, but Musk also alerted his company to “pause all hiring worldwide.” Last month, a Twitter user asked Musk whether an economic recession was happening in the country.
Responding to that, he stated the recession is certainly happening, but indicated it is a “good thing.” Furthermore, Musk asserted he wanted some people to go bankrupt as many “fools” have been getting unnecessary money for so long.
EXCLUSIVE: Tesla CEO Elon Musk has a 'super bad feeling' about the economy and wants to cut about 10% of jobs at the electric carmaker, he said in an email to executives seen by @Reuters https://t.co/4cyJ5oo8Ip @HyunjooJin reports 1/6 pic.twitter.com/2A6xOR7TRg
— Reuters (@Reuters) June 3, 2022
In December last year, Musk even claimed “not many” people” will be able to survive the next recession.
Another Twitter user asked the CEO about the possible longevity of the recession. On this, Musk claimed the next recession is likely to last about 12 to 18 months.
In addition to that, he also established many companies which have negative cash flow and value destroyers need to be bankrupt, as they consume a lot of resources.
Although Musk indicated a possible recession so many times, this time, he sent an email to Tesla’s executives to order them to start a job freeze and firing.
This is the most direct public communication between Musk and his top executives, suggesting a change in the policy of the company.
Biden Taking Musk’s Warnings for Granted
Meanwhile, Biden was asked about Elon Musk’s pessimistic stance on the economy, which has been nosediving since Biden’s election.
The president ignored the comments and sarcastically wished Musk the best of luck on his trip to the “moon.”
Biden responds to @elonmusk cutting production/staff listing companies expanding production. "Lots of luck on his trip to the moon, I guess," he said.
— Zeke Miller (@ZekeJMiller) June 3, 2022
Biden also compared Tesla with other electric car companies to justify the condition of the US economy.
He noted while Musk is talking about a recession, Ford is investing more money in electric vehicle production and hiring 6,000 new employees as well.
Likewise, Intel is also investing big money currently and adding over 20,000 jobs in the computer chips market. Another electric carmaker, Chrysler, is showing an optimistic trajectory in car manufacturing, Biden added.
Musk reacted to Biden’s remarks and reminded him via Twitter that his company, SpaceX, will provide rockets to the US government for sending people to the moon under the forthcoming Artemis program.
Many political commentators also criticized Biden for ignoring Musk’s continuous warnings about the deteriorating condition of the economy.
Jerry Dunleavy, a Washington Examiner journalist, said Biden’s controversial remarks about Musk’s moon trip are insulting, considering the multi-billionaire businessman is helping the US government send people to the moon.
