Elon Musk Changes His Tune After "layoff Theory" Stirred Up Storm

June 5 news, Friday Tesla was exploded 10,000 big layoffs after the stock price fell sharply. Tesla founder & CEO Musk had to come out to "put out the fire", on Sunday (June 5) he tweeted in response to a tweet that Tesla's overall staff size will increase, the number of salaried employees should be more stable.

At the same time, Musk also said that the goal of Tesla's service efforts in the North American region is for two-thirds of the cars to receive same-day service without waiting.

He did not directly respond to the authenticity of the internal emails that recently broke in the media about plans to lay off nearly 10,000 employees.

Meanwhile, in a brief response to his latest tweet, Musk did not say whether Tesla would convert some of its existing salaried employees to hourly workers or whether Tesla would hire new employees.

Layoff emails blown up, stock price plunges

On Friday (June 3), media reported that a shocking email from Musk appeared inside Tesla: the company needs to lay off 10% of its workforce, or close to 10,000 people, and suspend global hiring. As a result of this news, Tesla shares fell 9.2% in one day on Friday.

Media reports said that in an email sent by Tesla to internal executives on Thursday (June 2), Tesla CEO Musk said that the company needs to "cut its workforce by about 10 percent".

The email was titled "Global Hiring Pause. I have a very bad feeling about the economy," Musk said in the email.

In another email he sent to employees Friday, Musk said Tesla would reduce its salaried workforce by 10 percent because it was "overstaffed in many areas," but that the number of hourly workers would increase.

According to Tesla's U.S. regulatory filings, the company and its subsidiaries had nearly 100,000 employees by the end of 2021.

AI Day also delayed

Before the "layoff theory" broke, Musk issued an ultimatum in an email to Tesla employees on Wednesday (June 1) to return to the office for at least 40 hours a week. Failure to do so would be considered a resignation, he said.

Musk said Thursday that Tesla's artificial intelligence day has been pushed back to Sept. 30 and said a prototype of Optimus, the company's prioritized humanoid robot, could be ready by then and could be launched next year.

Optimus Prime is a humanoid robot that Tesla is prioritizing for development. Musk has previously said that it could be launched next year.

"Optimus may eventually solve the global labor shortage and may be able to deliver items around factories in the short term," Musk said to the public back in January.

This is Tesla's second AI Day, the first of which was held on Aug. 19, 2021.


Discover our Range

TESLA MODEL Y ACCESSORIES

View all

TESLA MODEL 3 ACCESSORIES

View all