Under Biden’s watch, America’s economy is crumbling.
Tesla and SpaceX CEO Elon Musk said he needs to cut about 10 percent of the company’s workforce because he has a “super bad feeling” about the economy, according to the leaked email obtained by Reuters.
Just two days after Musk told staff to return to the workplace or leave, an internal memo titled “pause all hiring worldwide” exclusively reviewed by Reuters:
Tesla (TSLA.O) CEO Elon Musk has a “super bad feeling” about the economy and needs to cut about 10% of jobs at the electric carmaker, he said in an email to executives seen by Reuters.
The message, sent on Thursday and titled “pause all hiring worldwide”, came two days after the billionaire told staff to return to the workplace or leave, and adds to a growing chorus of warnings from business leaders about the risks of recession.
Musk has warned in recent weeks about the risks of recession, but his email ordering a hiring freeze and staff cuts was the most direct and high-profile message of its kind from the head of an automaker.
According to a recent filing with the SEC, Musk’s Tesla employs nearly 100,000. Employees are spread between facilities in California, Nevada, Texas, China, and Germany. Cutting 10% of the company’s workforce would mean roughly 10,000 layoffs, a real hit to the already suffering job market in this nation.
Tesla’s stock price has rallied from a late-May low of 663 but has still lost almost 500 points since November, a drop that was accelerated after Musk embroiled himself in a bid to take over Twitter.
Tesla shares were trading about 3.5% down in pre-market Friday morning after the report of the hiring freeze and possible layoffs were made public.
The Gateway Pundit added:
Demand for Tesla has remained strong despite the U.S. and International economic strains.
Musk’s dismal financial forecast appears to echo recent comments from executives, including JPMorgan Chase & Co CEO Jamie Dimon and Goldman Sachs President John Waldron. Both men have warned of an impending recession for the U.S.
This week, Dimon said a “hurricane is right out there down the road coming our way.”
Inflation in the United States is holding at 40-year record highs. The cost of living for Americans continues to rise almost weekly. Gas prices continue to surge, and food prices are expected to soar in the coming months.
Sources: TheGatewayPundit, Reuters