Tesla stock dipped about 6% on Friday as reports circulated that CEO Elon Musk is considering a 10% reduction in the company’s workforce, a move that would impact roughly 10,000 employees amid broader concerns about the economy and demand for electric vehicles.
Internal communication to executives, later leaked to the U.S. press, indicated Musk’s intention to halt new hiring and enact significant layoffs. The message framed the cutback as a practical measure in response to economic headwinds, arriving just as a separate note from the world’s richest person circulated with a fresh ultimatum for Tesla staff.
Notable for his controversial public persona, Musk asserted that employees who opt for remote work should spend at least 40 hours weekly in the office, a directive he described as a clear minimum on in‑person presence. The stance followed his insistence that the most ambitious product development and production efforts cannot be sustained over the phone or through remote communications alone.
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According to Musk, anyone choosing remote work needs to be in the office for a minimum of 40 hours each week, a criterion he underscored as essential for collaboration and execution. The executive rationale focused on the need for direct collaboration to advance complex projects and maintain momentum across teams.
In late April, Tesla reported strong quarterly results, including a net profit of $3,318 million for the first quarter, representing substantial year‑over‑year growth. The company highlighted record profitability as it continued to scale production and delivery capabilities in key markets, reinforcing its position in the evolving electric vehicle landscape.
Tesla operates vehicle assembly and battery manufacturing facilities across the United States, China, and Germany. The year 2021 stood out for the company, with production reaching 930,422 units and deliveries totaling 936,172 units. In recent years, Musk’s leadership style has remained a topic of public discussion, as he has spent periods at the company’s Fremont site amid the industry’s more challenging times.
At the onset of the global health crisis in early 2020, Musk criticized California’s health restrictions to curb the pandemic, calling some measures excessive while defying orders to pause operations at the Fremont factory. He also drew scrutiny for his Twitter activity, which has at times drawn regulatory attention and investor concern. During this period, Musk proceeded with actions that included a high‑profile bid related to a major social platform, illustrating the broader connection between leadership decisions and market perception in the tech and automotive sectors.