Musk seeks to cut 10% of Tesla staff

Musk seeks to cut 10% of Tesla staff

New York: Tesla shares tumbled about 9 per cent Friday on a report that CEO Elon Musk is considering laying off 10 per cent of the company's workers, as well as new questions from U.S. regulators over complaints of the electric vehicles braking for no reason.

In an email Thursday to Tesla executives titled pause all hiring worldwide," Musk wrote that he had a super bad feeling about the economy and that the company needed to cut staff, Reuters reported.

Tesla had around 100,00 employees worldwide according to recent regulatory filings, including its subsidiaries.

Tesla shares have lost nearly one-third of their value since early April, shortly after Musk first publicly floated the idea of buying Twitter.

Tesla shares fell 66 to 709 Friday. Shares were trading around 1,150 just two months ago.

President Joe Biden, while giving a speech on Friday's jobs report in Rehoboth Beach, Delaware, was asked about Elon Musk saying he's pessimistic about the U.S. economy.

While Elon Musk is talking about that, Ford is increasing their investment overwhelmingly and I think Ford is increasing the investment in building new electric vehicles, Biden responded.

Six thousand new employees — union employees I might add — in the Midwest. The former Chrysler Corporation, Stellantis, they're also making similar investments in electric vehicles. Intel's adding 20,000 new jobs making computer chips.

There were other issues Friday that may have been weighing on Tesla's stock.

Government regulators reported Friday that more than 750 Tesla owners have complained that cars operating on the automaker's partially automated driving systems have suddenly stopped on roadways for no apparent reason.

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