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Musk’s Tesla to expel 10% of employees, due to company’s poor economy

Tesla’s chief executive, Elon Musk, plans to cut 10 percent of workers’ electricity vehicles production company, he told employees in an email on Friday.

Reduced jobs will not work for workers who build cars or batteries or install solar panels, and the number of hourly workers will increase, said Mr. Musk in an email, a copy of which was updated by the New York Times. “Tesla will reduce the number of paid employees by 10 percent, as it is already overcrowded,” he said.

Reuters reported the news earlier, citing a separate email Mr Musk had sent to only Tesla officials. The automaker’s share price closed Friday down by about 9 percent after that article was published.

Tesla’s workforce has grown significantly as sales have grown and have created new industries, including two that opened this year near Berlin and Austin, Texas. The company employed more than 99,000 employees at the end of last year. Just two years earlier, Tesla had 48,000.

Mr. Musk and Tesla did not respond to requests for comment.

Earlier this week, Mr. Musk told employees of Tesla and SpaceX, his rocket company, that they were expected to spend at least 40 hours a week in their offices.

“As you get older, your presence should be more visible,” said Mr. Musk emailed employees of SpaceX on Tuesday. “That’s why I spent so much time in the factory – so that those on the list could see me working with them. If I had not done that, SpaceX would have collapsed a long time ago. ”

That announcement included Mr. Musk and his companies in a heated debate over the proper way to restore order after two years of turmoil in the epidemic. It also invited concerns that he might fire high-profile players who would like to continue working away for some time.

The new demolition will not be the first in Tesla. The automaker also fired some employees in 2017 and 2018.

In recent weeks, investors have begun to question the company’s high price target. The market costs the company more than $ 728 billion, more than other major car manufacturers combined. Tesla’s shares fell by almost 40 percent from the end of last year, bringing attention to the risks the company faces from growing competition, allegations of racism and production problems in its Shanghai industry.

Some critics consider Mr. Musk for buying Twitter as another distraction that could hurt Tesla. Another major concern for some investors is that the automaker’s board does not have enough independence from the general manager to act as a check for him and his ambitions.

“From the point of view of good corporate governance, Tesla has a lot of red flags,” Andrew Poreda, a senior analyst focusing on public investment in Sage Advisory Services, an Austin investment company, told The Times last month. “There are almost no checks and balances.”

Mr. Management style Musk and his success – listed as the richest man in the world by Bloomberg and Forbes – benefited his fans but made him an electrician. Tesla has lost a host of top executives in recent years, many of whom have continued to perform high-profile jobs with other car manufacturers, technology companies and battery makers.

Recently, Mr. Musk praised the code of conduct in China, where working conditions can be difficult or stressful, suggesting that US workers were lazy. “They can’t just burn fat in the middle of the night. They will be burning oil at 3am, ”he told Chinese workers in an interview with the Financial Times. “So they will not abandon the factory type. Even in America, people try to avoid work altogether. ”

However, some analysts are still cheap about Tesla’s hopes. “In our view, Tesla probably does not need to hire more employees to maintain growth, and we think a retrenchment plan is likely to show that Tesla was hired last year,” Seth Goldstein, a senior equity analyst at Morningstar, said in a statement Friday.

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