- Elon Musk assures that the world is on the verge of a great recession.
- In an email, he told executives around the world to freeze hiring and that he plans to shed 10% of Tesla’s workforce.
- Governments don’t know how to contain inflation without leading the world into a recession.
The world economy is in trouble. This is how Elon Musk, founder of Tesla, of SpaceX and about to be the owner of the social network Twitter, understands it.
So much so that In an email to top executives at the electric-car maker, he told them he has a “bad feeling” about the economy and needs to lay off 10% of the workforce.
The novelty was published exclusively this Friday June 3 by Reuters.
The message, which bears the title “Pause hiring around the world”was sent on Thursday, June 2, two days after the tycoon forced all employees to return to work in person or resign.
Tesla, until December 2021, employed almost 100,000 people, so it is inferred that it will seek to get rid of 10,000.
Shares of Tesla plunged more than 3.1 percent after the close of operations on the US stock market after learning of the news.
Musk has been warning at every conference he participates in that there is a risk of a recession, but the email ordering to put aside hiring and lay off 10 percent of the workforce is the most drastic decision he has made since he was in charge of Tesla. .
The request is surprising because, for now, the demand for Tesla-brand cars and other electric vehicles is sustained despite the problems in the world economy.
In fact, Tesla had no problem returning to production at its China plant after the return of lockdowns due to the new wave of covid in that country.
What Musk thinks about the economy is in line with what other executives, such as JP Morgan head Jamie Dimon, have warned.
Dimon spoke of “a hurricane coming our way.”
Elon Musk, Tesla and the economy: “I have a bad feeling”
The truth is that things are not good in almost any part of the world.
The pandemic affected all economies and, when it began to dissipate, the war began in Eastern Europe.
Commodities are through the roof and inflation affects everyone.
In the United States, for example, price increases are at record highs, raising the cost of living to unexpected levels.
The Federal Reserve, to mitigate the impact, raises the interest rate, but has the challenge of avoiding the increase in inflation without generating a recession.
In the brief email sent to executives, Musk did not elaborate on his “bad feeling” about the outlook for the world economy.
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