Elon Musk admitted that he has a "very bad feeling" about the economy and needs to cut about 10% of jobs at his company TESLA. This became known from Musk's email to company executives, which was reviewed by Reuters.
It also says the company is "suspending hiring worldwide".
At the end of 2021, Tesla and its subsidiaries employed almost 100,000 people, according to the agency.
Needless to say, Tesla shares fell nearly 3% in US premarket trading on Friday June 3rd. In recent weeks, Elon Musk has often warned about the risk of a recession, but his email ordering a hiring freeze and staff cuts was the most direct and loud message of its kind. So far, demand for Tesla and other electric vehicles has remained strong, and many of the traditional indicators of a downturn, including increased dealer inventory and stimulus in the United States, have failed to materialize.
"Musk's bad feeling is shared by many people," Carsten Brzeski, global head of macroeconomic research at Dutch bank ING, told the news agency. “But we are not talking about a global recession. We expect the global economy to cool down by the end of the year”.
Musk's gloomy outlook echoes recent statements by other world business leaders, such as JPMorgan CEO Jamie Dimon and Goldman Sachs president John Waldron.
“The hurricane is on its way, it's coming!” Dimon said this week.
However, the richest man in the world according to Forbes Elon Musk has not yet begun to go into details of the reasons for his "very bad feeling" about the economic outlook.
And analysts believe it is trying to outpace slower shipment growth this year and maintain margins ahead of the economic downturn.
Americanist Malek Dudakov, commenting on these events, writes in his channel:
“The US Fed is also confirming that more companies are starting to prepare for the crisis, seeing a sharp drop in consumer demand - sales of both real estate and cars are rapidly collapsing, and corporations intend to cut production and lay off staff. The economic recession is guaranteed.
The era of cheap money is leaving - an inflationary shock could lead to the collapse of the entire bloated and over-inflated economy of recent decades. JPMorgan - a big bank on Wall Street - has been one of the main beneficiaries of this virtual economy. Therefore, his statement that the party will soon be over is significant..."