Wednesday, July 6

Elon Musk rectifies after threatening to fire 10% of Tesla staff

Businessman Elon Musk has rectified his decision and ensures that Tesla will only lay off 10% of the office staff, and not the entire company as he had pointed out on Thursday, causing a drop in the company’s stock market. Shares of the US automaker closed in New York at $703.55, 9.22% lower than they were on Thursday.

Musk had sent a message to company executives on Thursday, which was leaked to the press, in which he requested a 10% reduction in the workforce because he has a feeling that the economy will go through difficult times.

This Friday, in another email, this time sent to all Tesla employees, the businessman backed down and explained that the job cut will only affect certain departments. As revealed by the US network CNBC, Musk’s latest message indicates that Tesla will reduce 10% of its office staff because it considers that some areas are overstaffed.

“This does not apply to anyone who is assembling cars, battery packs or installing solar panels,” Musk said, adding that the workforce in those areas will actually increase.

Musk’s correction also comes after the president of the United States, Joe Biden, criticized the businessman for justifying his decision to lay off workers on a hunch about the hypothetical poor health of the economy. Biden declared this Friday that, while Tesla wants to cut jobs, competitors such as Ford or Stellantis have announced billions of dollars of investments in the US to increase their production and that they will create thousands of jobs.

After highlighting the job creation of Tesla’s rivals, the president, who in the past has already confronted the eccentric businessman who in turn has aligned himself with positions defended by former president Donald Trump (2017-2021), wished Tesla Musk “good luck with your trip to the Moon.”

Musk responded to Biden on Twitter with a “thank you Mr. President!” and a NASA statement in which it communicates that SpaceX, another company of the businessman, has been chosen to transport American astronauts to the Moon. In another tweet, Musk said that gerontocracy, referring to governments of the elderly, is a problem that could be solved by limiting the maximum age in the world of politics. Biden is 79 years old.

Two days ago Musk, the richest man in the world according to Forbes, told Tesla workers to forget about working remotely and that they have to choose between spending a minimum of 40 hours a week in the company’s offices or leave the automaker.

“Anyone who wants to work remotely needs to be in the office for a minimum (and I want to emphasize ‘minimum’) of 40 hours a week or leave Tesla,” Musk said. Musk justified his decision because, he said, the creation and production of the most interesting products on the planet cannot be done through phone calls.