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Tesla to conduct layoffs, implement hiring freeze as stock sinks: report

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Elon Musk’s Tesla is ready to conduct layoffs and freeze further hiring as the electrical automobile maker contends with a sustained downturn in its stock price, in response to a report Wednesday.

Tesla informed employees concerning the hiring freeze and said “one other wave of layoffs is coming next quarter,” Electrek reported, citing a source conversant in the matter.

It wasn’t immediately clear what number of employees and which departments at Tesla will probably be impacted by the pink slips.

Shares of Tesla have plunged greater than 65% this 12 months because the firm battles various supply chain difficulties, dwindling demand in China and intense public scrutiny over Musk’s controversial Twitter takeover. The corporate’s losses have outpaced declines within the broader tech sector.

The stock was up Wednesday about 1%, to around $139, after falling 8.5% on Tuesday.

Tesla investors have grown increasingly agitated in recent months as Musk has devoted more of his time to running Twitter. Critics have alleged that Musk’s chaotic $44 billion takeover in late October is weighing on Tesla’s stock price.

On Tuesday, Musk publicly blasted longtime Tesla bull and investor Ross Gerber, who had suggested the automaker’s stock price “reflects the worth of getting no CEO” and that it was “time for a shakeup.”

Tesla investors are frustrated with Musk’s Twitter takeover.AFP via Getty Images

“Please tell us your great ideas, Ross,” Musk tweeted.

In a separate tweet, Musk attributed the downturn at Tesla to worsening economic trends – and argued that investors are hoarding money as a substitute of stocks.

“As bank savings account rates of interest, that are guaranteed, begin to approach stock market returns, that are not guaranteed, people will increasingly move their money out of stocks into money, thus causing stocks to drop,” Musk said.

TeslaIt’s unclear what number of Tesla staff will probably be cut.Xinhua News Agency/Getty Images

In easy terms:

As bank savings account rates of interest, that are guaranteed, begin to approach stock market returns, that are *not* guaranteed, people will increasingly move their money out of stocks into money, thus causing stocks to drop.

— Elon Musk (@elonmusk) December 20, 2022

Musk also confirmed that he plans to resign as Twitter’s CEO “as soon as I find someone silly enough to take the job!”

In June, Musk signaled that he desired to cut 10% of Tesla’s workforce as a result of what he described as a “super bad feeling” concerning the state of the economy. The billionaire later clarified that the cuts would impact Tesla’s salaried workforce, but the corporate still planned to spice up its variety of hourly employees.

Elon MuskElon Musk is CEO of Tesla and Twitter.AFP via Getty Images

The corporate had nearly 100,000 employees around the globe as of the top of last 12 months.

Musk has also taken other steps to crack down on Tesla’s workforce – warning staffers over the summer that they need to work within the office full time or discover a recent job. In September, CNBC reported Musk received weekly updates on worker office attendance.

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